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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-21475
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Tamarack Funds Trust
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(Exact name of registrant as specified in charter)
100 S. Fifth Street, Suite 2300, Minneapolis, MN 55402-1240
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(Address of principal executive offices) (Zip code)
Bisys Fund Services, 3435 Stelzer Road, Columbus, OH 43219
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(Name and address of agent for service)
Registrant's telephone number, including area code: (614) 470-8000
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Date of fiscal year end: 9/30/04
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Date of reporting period: 9/30/04
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Form N-CSR is to be used by management investment companies to file reports
with the Commission not later than 10 days after the transmission to
stockholders of any report that is required to be transmitted to stockholders
under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1).
The Commission may use the information provided on Form N-CSR in its regulatory,
disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form
N-CSR, and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
Include a copy of the report transmitted to stockholders pursuant to
Rule 30e-1 under the Act (17 CFR 270.30e-1).
TAMARACK FUNDS
Annual Report September 30, 2004
[PHOTO]
LARGE CAP EQUITY
MID CAP EQUITY
SMALL CAP EQUITY
ENTERPRISE FUND
ENTERPRISE SMALL CAP FUND
VALUE FUND
MICROCAP VALUE FUND
SMALL CAP INTERNATIONAL FUND
[LOGO] TAMARACK FUNDS
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Tamarack Funds
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ABOUT YOUR ANNUAL REPORT
This annual report includes detailed information regarding your Fund's
performance. This report is provided to help answer your questions as a
shareholder. Among these questions may be: How has my Fund performed against
its benchmark both in the last year and over the last ten years (or since
inception if less than ten years)? What are the annual expenses of my Fund?
What are the significant accounting policies and procedures followed by my
Fund?
The Tamarack Funds compare their performance against widely used market
indices, depending on the market sector or investment style of the particular
fund. These indices include the S&P 500 and Russell 2000.
We hope the financial information presented, as well as the discussion and
analysis from your portfolio manager(s), will help you evaluate your investment
in the Tamarack Funds. We also encourage you to read your Fund's prospectus for
further detail as to your Fund's investment policies and risk profile. Tamarack
Funds prospectuses and performance information subsequent to the date of this
report are available on our website at www.tamarackfunds.com.
A description of the policies and procedures that your Fund uses to determine
how to vote proxies relating to portfolio securities is available (i) without
charge, upon request, by calling 1-800-422-2766; (ii) on the Fund's website at
www.tamarackfunds.com; and (iii) on the Securities and Exchange Commission's
(the "Commission") website at http://www.sec.gov.
Information regarding how your Fund voted proxies relating to portfolio
securities during the most recent 12-month period ended June 30 is available
(i) on the Fund's website at www.tamarackfunds.com; and (ii) on the
Commission's website at http://www.sec.gov.
A schedule of each Fund's portfolio holdings will be filed with the Commission
for the first and third quarters of each fiscal year on Form N-Q. This
information is available on the Commission's website at http://www.sec.gov and
may be reviewed and copied at the Commission's Public Reference Room in
Washington, D.C. Information on the operation of the Public Reference Room is
available by calling 1-800-SEC-0330.
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TABLE OF CONTENTS
Shareholder Letter .............................................. 1
Letter from the CIO of Equities ................................. 2
Equity Portfolio Managers ....................................... 4
Performance Summary ............................................. 7
Large Cap Equity Fund
- - Management Discussion and Analysis ............................ 10
Mid Cap Equity Fund
- - Management Discussion and Analysis ............................ 12
Small Cap Equity Fund
- - Management Discussion and Analysis ............................ 14
Enterprise Fund
- - Management Discussion and Analysis ............................ 16
Enterprise Small Cap Fund
- - Management Discussion and Analysis ............................ 18
Value Fund
- - Management Discussion and Analysis ............................ 20
Microcap Value Fund
- - Management Discussion and Analysis ............................ 22
Small Cap International Fund
- - Management Discussion and Analysis ............................ 24
Financial Statements
- - Statements of Assets and Liabilities .......................... 26
- - Statements of Operations ...................................... 32
- - Statements of Changes in Net Assets ........................... 40
Financial Highlights ............................................ 50
Notes to Financial Statements ................................... 66
Schedules of Investments ........................................ 82
Report of Independent Registered Public Accounting Firm ......... 99
Management ...................................................... 100
Share Class Information ......................................... 103
Supplemental Information ........................................ 104
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SHAREHOLDER LETTER
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To Our Shareholders
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Enclosed is the first annual report as of the new Tamarack Funds' year-end of
September 30th. This report includes information on all of the Tamarack equity
funds as of that date. Despite the many changes over the past year, your Fund
equity team continues unchanged and our relationship with Babson Capital
Management as subadvisor for the value style equity Funds remains in place. The
Tamarack equity funds include both growth and value investing styles and focus
on market capitalization sectors ranging from micro cap to large cap. At the
Tamarack Funds we believe it is important for prudent investors to be
diversified in both style and size as this not only allows investors to
participate in positive returns for those market sectors in favor, but also
provides protection against the downturns experienced by styles not currently
being rewarded by the market. The past twelve months have given all of us ample
evidence of the volatility of U.S. equity markets. This volatility amid
ambiguous economic news, U.S. election year politics and global uncertainty over
war and terrorism has only emphasized the importance of diversified investing
with a long-term perspective. We also believe diversified investing should
include fixed income securities. For a full overview of the Tamarack Funds,
please visit our website at www.tamarackfunds.com.
This annual report includes detailed information as to the performance of your
Fund(s), as well as commentary from each Fund portfolio manager and a message
from the Tamarack Chief Investment Officer of Equities. This information is
prepared to provide you with information as to your Fund(s)' performance
relative to its market sector as well as a review of your Fund(s)' expenses. We
encourage you to review this information and hope you will find it helpful. Our
next shareholder report to you will be in six months, as of March 31, 2005.
However, daily return information, monthly updates on top ten holdings, and
detailed quarterly updates on the Tamarack Funds are posted on our website. You
may also call the Funds' toll-free number at (800) 422-2766 for assistance with
your questions. We know that your investment in the Tamarack Funds is important
to you. We value the trust you have placed in us and will continue our efforts
to provide you with solid risk-balanced returns.
Sincerely,
/s/ Jennifer Lammers
Jennifer Lammers
President, Tamarack Funds
1
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LETTER FROM THE CIO OF EQUITIES
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In the past few months, investors have been strongly reminded that market
trends can shift dramatically and without much fanfare. As of the quarter ended
September 30, 2004, and for the second consecutive quarter, larger
capitalization stocks (Russell 1000 Index: -1.8%, Russell Midcap Index: -0.8%)
fared better than smaller capitalization issues (Russell 2000 Index: -2.9%). In
addition, value stocks outperformed growth across all market capitalizations
for the quarter, which now means value stocks have dominated growth for 1, 3
and 5 year periods ending September. What a difference a few years can make; in
the late 1990s, investors clamored to own growth stocks, as evidenced by
Russell Index performance from September 1998-March 2000, where growth stocks
returned +52.3% versus value returning +19.7%. Recent trends just further
underline the importance to investors of diversifying their portfolios between
both growth and value stocks.
Longer term, we believe that the outlook for both growth and value stocks
continues to be quite favorable despite the near-term concerns regarding higher
energy prices, rising interest rates, terrorism, the war in Iraq and the
outcome of the U.S. Presidential election. In the meantime, investors may
languish on the sidelines until economic indicators are less cloudy. Given this
backdrop, savvy investors should take a long-term approach to investing, with
an emphasis on strong stock selection and diversification. When evaluating the
long-term direction of stock prices, one approach investors can take is to
consider earnings and P/E multiples. With the market's performance in 2004,
valuations, specifically current P/Es, seem more appropriate. The current P/E
(based on 12-month forward estimates) for the S&P 500 is 15.6x, indicating that
the overall market is now fairly valued based on historical metrics. The
average over the past 25 years is 15x. Relatively stable P/Es generally mean
that earnings growth will be the primary long-term driver of stock prices.
Accordingly, we believe that a positive earnings outlook is critical if U.S.
equity markets are going to rally further. Economic fundamentals do seem to
support further gains in profits, although the gains are not going to be quite
as spectacular. Corporate profit growth has decelerated from the 20% expected
for calendar year 2004 to 12% expected in 2005. As the profit cycle continues
to decelerate, history suggests investors emphasizing higher quality issues
(those exhibiting strong fundamental profitability) in their portfolio will be
rewarded.
Further, the inflationary environment remains benign. Core CPI, one inflation
measure, has eked out increases of just 0.1% per month this summer, which
suggests the Federal Reserve's move to normalize the absolute level of interest
rates will continue to be gradual. It is therefore worth noting that as the
Federal Reserve gradually moves toward a more neutral short-term rate and bond
yields rise (and therefore bond prices fall), stocks are likely to continue
outperforming both bonds and cash over the next 12 to 18 months.
2
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LETTER FROM THE CIO OF EQUITIES (cont.)
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In conclusion, nothing is certain when it comes to investing. Whether markets
rise or decline, the prudent investor should own a diversified portfolio of high
quality, cash flow rich companies that provide longer-term investment
opportunities regardless of near-term market conditions. This past twelve-month
time frame has clearly been a very good example of the need to be invested in
various asset types and sizes.
/s/ Nancy M. Scinto
Nancy M. Scinto [PHOTO]
Tamarack Funds Chief Investment Officer
Equity Products
3
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EQUITY PORTFOLIO MANAGERS
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Voyageur Asset Management employs a team approach to the management of Large
Cap Equity Fund, Mid Cap Equity Fund and Small Cap Equity Fund, with no
individual team member being solely responsible for investment decisions.
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NANCY M. SCINTO
TAMARACK FUNDS CHIEF INVESTMENT OFFICER, EQUITY PRODUCTS.
MANAGING DIRECTOR, DIRECTOR OF RESEARCH, SENIOR PORTFOLIO MANAGER.
Nancy Scinto joined Voyageur in 1999 from Chicago Trust Company where she
managed institutional accounts and was co-manager of the five-star
Alleghany/Chicago Growth and Income Fund. She began her career in the
investment industry in 1984 and has held various positions including personal
trust, equity trader, senior equity analyst and senior portfolio manager. Nancy
leads the Voyageur growth equity research efforts as Director of Research. She
is also the Chief Investment Officer, Equity Products for the Tamarack Funds.
Nancy holds a BA from Governors State University and an MBA from DePaul
University. She is also a member of the Investment Analysts Society of Chicago.
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DAVID J. COX, CFA
MANAGING DIRECTOR, DIRECTOR OF EQUITY INVESTMENTS, SENIOR PORTFOLIO MANAGER.
David Cox has been in the investment industry since 1984. He received his MBA
from Indiana University, his BS from the University of Illinois and is a CFA
charterholder. David is a member of the Investment Analysts Society of Chicago
and the Association for Investment Management and Research.
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STEVEN A. RUSNAK, CFA
VICE PRESIDENT, SENIOR PORTFOLIO MANAGER.
Steven Rusnak provides the Voyageur growth equity team with his skills in
fundamental equity research over a diverse group of industries from financials
to health care. He has been in the investment industry since 1985. Steven
received his MBA and BA from the University of Michigan and is a CFA
charterholder. He is a member of the Investment Analysts Society of Chicago and
the Association for Investment Management and Research.
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KENNETH A. TYSZKO, CPA, CFA
VICE PRESIDENT, SENIOR PORTFOLIO MANAGER.
Kenneth Tyszko has been the portfolio manager for the small cap growth equity
product since its inception in 1995. He has been in the investment industry
since 1984. Kenneth received his BS from the University of Illinois and is both
a CFA charterholder and a Certified Public Accountant. He is a member of the
Illinois CPA Society, the Investment Analysts Society of Chicago and the
Association for Investment Management and Research.
4
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EQUITY PORTFOLIO MANAGERS
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FORBES L. WATSON
VICE PRESIDENT, PORTFOLIO MANAGER.
Forbes Watson serves as a portfolio manager for Voyageur's small cap growth
equity strategy. He has been in the investment industry since 1981. Forbes
received his MBA from Millsaps College and his BA from the University of North
Texas. He is a member of the North Carolina Society for Financial Analysts and
the Association for Investment Management and Research.
Voyageur Asset Management employs, at its own expense, Babson Capital Management
LLC as sub-advisor to provide day-to-day portfolio management for the
Enterprise, Enterprise Small Cap, Value and Microcap Value Funds and Denver
Investment Advisors LLC as sub-advisor to provide day-to-day portfolio
management for the Small Cap International Fund.
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ENTERPRISE FUND AND
ENTERPRISE SMALL CAP FUND
RENIE K. HEEBNER, CFA
MANAGING DIRECTOR, PORTFOLIO MANAGER.
Renie Heebner is co-portfolio manager for Enterprise Fund and is also an equity
analyst specializing in microcap stocks. Renie began her career in the
investment industry in 1982. Prior to joining Babson in 1987, she served in the
investment department of New England Mutual Life Insurance Company. She holds a
BA from Middlebury College and is a CFA charterholder. Renie is also a member of
the Boston Security Analysts Society.
LANCE F. JAMES
MANAGING DIRECTOR, PORTFOLIO MANAGER.
Lance James is co-portfolio manager of Enterprise Fund and portfolio manager of
Enterprise Small Cap Fund. Lance began his career in the investment industry in
1980. Prior to joining Babson in 1986, he spent time at Rockwell International
Corporation, EBF Associates of Boston and later at Hewitt Associates. Lance
holds an AB from Princeton University and an MBA from the Wharton School at the
University of Pennsylvania.
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MICROCAP VALUE FUND AND
VALUE FUND
ANTHONY M. MARAMARCO, PHD, CFA
MANAGING DIRECTOR, PORTFOLIO MANAGER.
Anthony Maramarco is co-head of the large cap value team and portfolio manager
for Microcap Value Fund. He is also responsible for portfolio management of the
large cap value strategy. Tony began his career in the investment industry in
1981. Prior to joining Babson in 1985, he was an analyst at Connecticut National
Bank. Tony holds a BA from Colby College, an MA/PhD from the University of
Chicago and an MBA from Rensselaer Polytechnic Institute. He is a CFA
charterholder and a member of the Boston Security Analysts Society, the Hartford
Society of Financial Analysts and is a former regional director of the Financial
Analyst Federation (AIMR).
5
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EQUITY PORTFOLIO MANAGERS
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MICHAEL P. STACK, CFA
MANAGING DIRECTOR, PORTFOLIO MANAGER.
Mike Stack is co-head of the large cap value team. He is also responsible for
portfolio management of the large cap value strategy. Prior to joining Babson
in 2002, Mike was employed by Putnam Investments where he was a Senior Vice
President and senior portfolio manager. Prior to Putnam, he spent time at
Independence Investment Associates, National Life Investment Management and
General Electric Corp. Mike holds a BS and MS in Finance from Fairfield
University and is a CFA charterholder.
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SMALL CAP INTERNATIONAL FUND
ADAM SCHOR, CFA
PORTFOLIO MANAGER.
Adam Schor is responsible for management of Small Cap International Fund. He
began his career in the investment industry in 1989. Adam's investment
experience includes visiting and investing in companies throughout the world.
Adam joined Bee & Associates (currently a division of Denver Investment
Advisors LLC) in 1997. Prior to that, he worked at Harris Associates from 1993
to 1997. Prior to Harris Associates, Adam worked at the State of Wisconsin
Investment Board and American Family Insurance Group. He graduated from the
University of Wisconsin with an MBA and has a BA in Journalism from
Northwestern University. Adam is a CFA charterholder.
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KEVIN BECK, CFA
EQUITY ANALYST, PORTFOLIO MANAGER.
Kevin Beck began his career in the investment industry in 1993 and is an
analyst for Small Cap International Fund. He joined Bee & Associates in 2000
from Robert Fleming Inc., where he was a regional equity analyst in their Rio
de Janeiro office. Kevin's prior investment experience includes American Family
Insurance and Harris Associates. He graduated from the University of Wisconsin
with an MBA and has a BS from Indiana University. Kevin is a CFA charterholder.
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JOHN C. FENLEY, CFA
PORTFOLIO MANAGER.
John Fenley began his career in the investment industry in 1990 and serves as a
portfolio manager for Small Cap International Fund. John joined Bee &
Associates in 2000 from Hansberger Global Investors where he was the lead
portfolio manager and portfolio team member responsible for over $1 billion in
assets of international, global and small-cap mandates for institutional
clients and mutual funds. Prior to that he worked as a portfolio manager and
analyst at Sun Trust and at Fifth Third Bancorp. John received his MBA from
Duke University's Fuqua School of Business and has a BA in Economics with a
minor in Sociology from Vanderbilt University. John is also a CFA
charterholder.
6
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PERFORMANCE SUMMARY
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Total Returns as of September 30, 2004
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TAMARACK LARGE CAP EQUITY FUND
SINCE
1 YEAR 3 YEAR 5 YEAR 10 YEAR INCEPTION (a)
----------- ----------- ----------- ----------- -------------
Class A (i)
- - Including Maximum Sales
Charge of 5.75% 3.02% -1.32% -5.68% 5.86% 7.29%
- - At Net Asset Value 9.29% 0.65% -4.55% 6.49% 7.75%
Class C (j)
- - Including Contingent Deferred
Sales Charge of 1.00% 7.51% -0.10% -5.26% 5.70% 6.94%
- - At Net Asset Value 8.51% -0.10% -5.26% 5.70% 6.94%
Class I (i) 9.56% 0.84% -4.32% 6.79% 8.12%
Class R (j) 9.03% 0.40% -4.79% 6.23% 7.48%
Class S (k) 9.56% 0.84% -4.32% 6.79% 8.12%
S&P 500 Index* 13.86% 4.04% -1.31% 11.08% 11.31%
Russell 1000 Growth Index* 7.51% 1.61% -6.78% 8.71% N/A
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TAMARACK MID CAP EQUITY FUND
SINCE
1 YEAR 3 YEAR 5 YEAR 10 YEAR INCEPTION (b)
----------- ----------- ----------- ----------- -------------
Class A (i)
- - Including Maximum Sales
Charge of 5.75% 1.31% 4.93% 5.97% 12.07% 12.76%
- - At Net Asset Value 7.53% 7.02% 7.23% 12.74% 13.25%
Class C (j)
- - Including Contingent Deferred
Sales Charge of 1.00% 5.72% 6.22% 6.43% 11.90% 12.41%
- - At Net Asset Value 6.72% 6.22% 6.43% 11.90% 12.41%
Class I (i) 7.66% 7.27% 7.53% 13.03% 13.61%
Class R (j) 7.20% 6.73% 6.95% 12.46% 12.97%
Class S (k) 7.66% 7.27% 7.53% 13.03% 13.61%
S&P Midcap 400 Index* 17.55% 12.42% 10.51% 14.48% 14.09%
S&P Midcap 400/Barra Growth Index* 11.73% 9.49% 6.71% 13.66% 13.16%
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TAMARACK SMALL CAP EQUITY FUND
SINCE
1 YEAR 3 YEAR 5 YEAR INCEPTION (c)
-------- -------- -------- -------------
Class A (i)
- - Including Maximum Sales
Charge of 5.75% 10.51% 10.10% 5.52% 11.25%
- - At Net Asset Value 17.28% 12.28% 6.78% 11.92%
Class C (j)
- - Including Contingent Deferred
Sales Charge of 1.00% 15.46% 11.46% 6.00% 11.09%
- - At Net Asset Value 16.46% 11.46% 6.00% 11.09%
Class I (i) 17.53% 12.52% 7.02% 12.24%
Class R (j) 16.95% 11.99% 6.51% 11.64%
Class S (k) 17.53% 12.52% 7.02% 12.24%
Russell 2000 Index* 18.77% 13.71% 7.41% 10.35%
S&P Small Cap 600 Index* 24.58% 15.78% 11.49% 13.25%
Russell 2000 Growth Index* 11.92% 9.09% -0.68% 5.77%
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7
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PERFORMANCE SUMMARY
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TAMARACK ENTERPRISE FUND
SINCE
1 YEAR 3 YEAR 5 YEAR 10 YEAR INCEPTION (d)
----------- ----------- ----------- ----------- -------------
Class A (l)
- - Including Maximum Sales
Charge of 5.75% 15.83% 17.14% 15.74% 12.07% 12.38%
- - At Net Asset Value 22.90% 19.48% 17.12% 12.74% 12.70%
Class C (l)
- - Including Contingent Deferred
Sales Charge of 1.00% 21.04% 18.61% 16.26% 11.91% 11.87%
- - At Net Asset Value 22.04% 18.61% 16.26% 11.91% 11.87%
Class I (m) 23.27% 19.80% 17.42% 13.02% 12.99%
Class R (l) 22.58% 19.17% 16.82% 12.46% 12.42%
Class S 23.27% 19.80% 17.42% 13.02% 12.99%
Russell 2000 Value Index* 25.66% 17.69% 14.71% 13.41% 12.77%
Russell 2000 Index* 18.77% 13.71% 7.41% 9.87% 9.85%
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TAMARACK ENTERPRISE SMALL CAP FUND
SINCE
1 YEAR 3 YEAR 5 YEAR 10 YEAR INCEPTION (e)
----------- ----------- ----------- ----------- -------------
Class A (l)
- - Including Maximum Sales
Charge of 5.75% 16.48% 13.43% 10.33% 11.72% 11.71%
- - At Net Asset Value 23.61% 15.69% 11.65% 12.38% 12.21%
Class C (l)
- - Including Contingent Deferred
Sales Charge of 1.00% 21.65% 14.81% 10.81% 11.55% 11.37%
- - At Net Asset Value 22.65% 14.81% 10.81% 11.55% 11.37%
Class R (l) 23.25% 15.38% 11.36% 12.10% 11.93%
Class S 23.89% 15.97% 11.92% 12.66% 12.49%
Russell 2000 Index* 18.77% 13.71% 7.41% 9.87% 11.08%
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TAMARACK VALUE FUND
SINCE
1 YEAR 3 YEAR 5 YEAR 10 YEAR INCEPTION (f)
----------- ---------- ---------- --------- -------------
Class A (l)
- - Including Maximum Sales
Charge of 5.75% 11.20% 3.65% 2.31% 8.92% 11.57%
- - At Net Asset Value 17.99% 5.72% 3.53% 9.57% 11.90%
Class C (l)
- - Including Contingent Deferred
Sales Charge of 1.00% 16.08% 4.92% 2.76% 8.75% 11.06%
- - At Net Asset Value 17.08% 4.92% 2.76% 8.75% 11.06%
Class R (l) 17.67% 5.44% 3.27% 9.29% 11.62%
Class S 18.25% 5.97% 3.79% 9.84% 12.18%
Russell 1000 Value Index* 20.52% 7.57% 4.31% 12.53% 13.46%
S&P 500 Index* 13.86% 4.04% -1.31% 11.08% 12.82%
S&P 500/Barra Value Index* 20.47% 5.83% 2.30% 11.10% 12.72%
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8
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PERFORMANCE SUMMARY
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TAMARACK MICROCAP VALUE FUND
SINCE
1 YEAR 3 YEAR 5 YEAR 10 YEAR INCEPTION (g)
----------- ----------- ----------- ----------- -------------
Class A (l)
- - Including Maximum Sales
Charge of 5.75% 18.27% 15.50% 13.98% 13.31% 10.02%
- - At Net Asset Value 25.49% 17.79% 15.33% 13.99% 10.40%
Class C (l)
- - Including Contingent Deferred
Sales Charge of 1.00% 23.58% 16.92% 14.48% 13.14% 9.58%
- - At Net Asset Value 24.58% 16.92% 14.48% 13.14% 9.58%
Class R (l) 25.18% 17.50% 15.05% 13.71% 10.12%
Class S 25.86% 18.10% 15.63% 14.28% 10.68%
Russell 2000 Value Index* 25.66% 17.69% 14.71% 13.41% 11.66%
Russell 2000 Index* 18.77% 13.71% 7.41% 9.87% 8.91%
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TAMARACK SMALL CAP INTERNATIONAL FUND
SINCE
1 YEAR 3 YEAR INCEPTION (h)
-------- -------- -------------
Class A (l)
- - Including Maximum Sales
Charge of 5.75% 5.57% 11.69% -0.74%
- - At Net Asset Value 11.96% 13.93% 0.83%
Class C (l)
- - Including Contingent Deferred
Sales Charge of 1.00% 10.16% 13.09% 0.08%
- - At Net Asset Value 11.16% 13.09% 0.08%
Class R (l) 11.69% 13.65% 0.58%
Class S 12.23% 14.21% 1.08%
MSCI EAFE Small-Cap Index* 24.38% 18.27% 8.73%
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Performance data quoted represents past performance. Past performance is no
guarantee of future results. Investment return and principal value of an
investment will fluctuate so that an investor's shares, when redeemed, may be
worth more or less than their original cost. Current performance may be lower or
higher than performance quoted.
*Each of the comparative indices is a widely recognized market value weighted
measure of the return of securities. Index returns are calculated on a monthly
basis, but do not include sales fees or operating expenses. You cannot invest
directly in indices.
(a) The since inception date (commencement of operations) of the Fund is
December 31, 1990.
(b) The since inception date (commencement of operations) of the Fund is
December 31, 1990.
(c) The since inception date (commencement of operations) of the Fund is
January 1, 1995.
(d) The since inception date (commencement of operations) of the Fund is
December 2, 1983.
(e) The since inception date (commencement of operations) of the Fund is August
5, 1991.
(f) The since inception date (commencement of operations) of the Fund is
September 30, 1984.
(g) The since inception date (commencement of operations) of the Fund is
September 10, 1987.
(h) The since inception date (commencement of operations) of the Fund is
December 19, 2000.
(i) The performance in the table reflects the performance of the former RBC
Funds, the predecessors to the Tamarack Funds. The quoted performance of
the Funds include the performance of a common trust fund ("CTF") account
advised by the Adviser (including its predecessor) and managed the same as
the Fund in all material respects, for periods dating prior to the Fund's
commencement of operations (October 1, 1996 for the Large Cap Equity Fund,
June 1, 1994 for the Mid Cap Equity Fund, and May 2, 1997 for the Small Cap
Equity Fund), as adjusted to reflect the full contractual rate of expenses
associated with the Fund at its inception. Each CTF account was not
registered with the SEC under the 1940 Act and therefore was not subject to
the investment restrictions imposed by law on registered mutual funds. If
each CTF account had been registered, the CTF account's performance may
have been adversely affected. Fund performance reflects applicable fee
waivers/expense reimbursements (which, if excluded, would cause performance
to be lower).
(j) The inception date for Class C and Class R shares of the Fund is April 19,
2004. All performance shown for each such class of shares prior to its
inception date is based on the performance of the Class A Shares of the
Fund, adjusted to reflect the fees and expenses of Class C and Class R
shares, as applicable (and where applicable, the maximum sales charges of
the Class C shares).
(k) The inception date for Class S of the Fund is April 19, 2004. All
performance shown for this class of shares prior to its inception date is
based on the performance of the Class I Shares of the Fund, adjusted to
reflect the fees and expenses of Class S.
(l) The inception date for Class A, Class C and Class R shares of the Fund is
April 19, 2004. All performance shown for each such class of shares prior
to its inception date is based on the performance of the Class S Shares of
the Fund, adjusted to reflect the fees and expenses of Class A, Class C and
Class R shares, as applicable (and where applicable, the maximum sales
charges of the Class A and Class C shares).
(m) The inception date for Class I shares of the Fund is September 30, 2004.
All performance shown for each such class of shares prior to its inception
date is based on the performance of the Class S Shares of the Fund,
adjusted to reflect the fees and expenses of Class I shares, as applicable.
9
================================================================================
MANAGEMENT DISCUSSION AND ANALYSIS
================================================================================
Tamarack Large Cap Equity Fund
- --------------------------------------------------------------------------------
MARKET COMMENTARY
The end of the Tamarack Large Cap Equity Fund's fiscal year ended September 30,
2004, brings to a close an unstable period for U.S. equity markets. From
October 2003 through June 2004 U.S. equity indices were positive, reflecting
general optimism as to improving U.S. economic conditions. However, investor
sentiment turned extremely cautious in summer 2004. Investor concern about
economic growth was triggered by higher oil prices and the effect these would
have on corporate profits and consumer budgets. Consequently, investors became
sellers and U.S. equity indices concluded the quarter in negative territory
with the S&P 500 experiencing its first quarterly decline in a year and a half,
falling 1.9%. The Dow average declined 2.9% and the NASDAQ Composite Index shed
7.4%, despite a late summer rally from mid-August lows.
- --------------------------------------------------------------------------------
PERFORMANCE
The Tamarack Large Cap Equity Fund's total return during the 12-month period
ending September 30, 2004 was +9.3% (Class A shares). This return compares
favorably to +7.5% for the Russell 1000 Growth Index, although it was behind
the total return of +13.9% for the S&P 500 Index. Over the past year the market
has rewarded small, low quality (as measured by 10 year profitability record)
value issues. Our focus, however, is on high quality, fundamentally driven
stocks. Despite this difference, our good stock selection has allowed us to
participate in the market's growth over the past year. Our performance was
helped by being overweight versus our benchmarks in the Consumer Discretionary
sector with our holdings of eBay, Starbucks, and Carnival Cruise driving
performance. Our overweight position in Technology, along with careful stock
selection, also helped the Fund with stocks such as Symantec, Adobe, and Dell
adding to performance. We also kept our holdings lower than both benchmarks in
the Energy, Utility and Materials sectors, after not finding stocks that met
our high quality growth bias. In this market environment these sectors were
high performers, however, and our lower holdings also contributed to our
underperformance.
- --------------------------------------------------------------------------------
OUTLOOK
Longer term, we continue to believe that the outlook for stocks continues to be
quite favorable despite significant short-term uncertainty. Investors' concerns
clearly focus on several economic and political factors, including higher energy
costs, rising interest rates, the outcome of the war in Iraq and the U.S.
Presidential election. We expect that U.S. equity prices will remain volatile
until economic indicators become stronger and the U.S. Presidential election is
over.
Over the near-term, we continue to favor Consumer, Health Care, and select
Technology names. The weakest market area, Technology, may continue to
experience aftershocks from the bubble deflating. However, through careful stock
selection there are exceptions. The exceptions would be those companies in niche
markets, dominant players or those companies offering technology improvements.
Our philosophy remains simple: own a diversified portfolio of companies with
proven track records of profitability and cash flow that provide longer-term
investment opportunities regardless of short-term market conditions.
[PHOTO]
Nancy M. Scinto
Managing Director
[PHOTO]
Steven A. Rusnak, CFA
Vice President
10
================================================================================
MANAGEMENT DISCUSSION AND ANALYSIS
================================================================================
Tamarack Large Cap Equity Fund
- --------------------------------------------------------------------------------
INVESTMENT OBJECTIVE
Long-term capital appreciation.
- --------------------------------------------------------------------------------
BENCHMARK
S&P 500 Index
- --------------------------------------------------------------------------------
ASSET ALLOCATION
(% OF FUND'S INVESTMENTS)
& TOP FIVE INDUSTRIES
(% OF FUND'S NET ASSETS)
[PIE CHART] TOP FIVE INDUSTRIES
Information Technology 23.6%
Common Stocks Consumer Discretionary 17.2%
99.2% Healthcare 17.0%
Investment Companies Financials 15.4%
0.8% Industrials 10.1%
- --------------------------------------------------------------------------------
TOP TEN HOLDINGS
(AS OF 9/30/04)
(% OF FUND'S NET ASSETS)
Symantec Corp. 4.84% Dell, Inc. 2.99%
Danaher Corp. 3.60% Adobe Systems, Inc. 2.96%
First Data Corp. 3.45% Kohl's Corp. 2.96%
General Electric Co. 3.31% Medtronic, Inc. 2.94%
Ecolab, Inc. 3.04% AFLAC, Inc. 2.94%
- --------------------------------------------------------------------------------
GROWTH OF $10,000 INITIAL
INVESTMENT OVER 10 YEARS
[FLOW CHART]
(DOLLARS IN THOUSANDS)
S&P 500
CLASS A INDEX
------- ----------
9/30/1994 $ 9,425 $10,000.00
3/31/1995 9,724 10970.74
9/30/1995 10,958 12970.80
3/31/1996 12,283 14488.98
9/30/1996 13,123 15606.52
3/31/1997 14,242 17360.47
9/30/1997 17,275 21915.49
3/31/1998 19,095 25687.14
9/30/1998 16,879 23906.02
3/31/1999 22,105 30436.04
9/30/1999 22,315 30548.39
3/31/2000 26,744 35893.77
9/30/2000 25,125 34601.79
3/31/2001 19,893 28117.14
9/30/2001 17,341 25394.86
3/31/2002 18,896 28185.75
9/30/2002 13,573 20196.82
3/31/2003 13,939 21208.86
9/30/2003 16,176 25119.54
3/31/2004 18,090 28653.10
9/30/2004 17,679 28600.84
The graph reflects an initial investment of $10,000 over a 10 year period and is
based on Class A shares at net asset value. The Fund's maximum sales charge is
5.75%. The quoted performance of the Fund includes performance of certain
collective trust funds ("Commingled Accounts") advised by Centura Bank prior to
the establishment of the Fund on October 1, 1996. On that date, the assets of
the Commingled Accounts were equivalent in all material aspects to those of the
Fund. During that time, the Commingled Accounts were not registered under the
Investment Company Act of 1940 (the "1940 Act"), and therefore were not subject
to certain investment restrictions that are imposed under the 1940 Act. If the
Commingled Accounts had been registered under the 1940 Act, the Commingled
Accounts' performance may have been adversely affected. Because the Commingled
Accounts did not charge any expenses, their performance has been adjusted to
reflect the Fund's estimated expenses at the time of its inception, which was
1.00% of average daily net assets for Class A. The Fund's total return includes
reinvested dividends and capital gains. The Fund's total return also includes
operating expenses that reduce return, while the total return of the index does
not. The graph does not reflect the deduction of taxes that a shareholder would
pay on fund distributions or redemption of fund shares. Performance data quoted
represents past performance. Past performance is no guarantee of future results.
Investment return and principal value of an investment will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than their original
cost. Current performance may be lower or higher than performance quoted.
Performance of other classes will vary due to differences in fee structures.
11
================================================================================
MANAGEMENT DISCUSSION AND ANALYSIS
================================================================================
Tamarack Mid Cap Equity Fund
- --------------------------------------------------------------------------------
MARKET COMMENTARY
Caution appeared to be the prevailing word for the 12-month period ended
September 30, 2004. Investors became sellers in the first half of the quarter
based on concerns that the U.S. economy had hit a "soft patch" of slow growth.
The slowdown in growth is being largely attributed to the specter of higher oil
prices, with prices briefly touching a high of $50.47 per barrel. This
resurrected fears about the outlook for corporate profits and consumer budgets,
consequently helping to undermine equity market performance in the period and
leading investors to question whether an ongoing rally is sustainable. U.S.
equity indices concluded the quarter in negative territory with the S&P 500
experiencing its first quarterly decline in a year and a half.
- --------------------------------------------------------------------------------
PERFORMANCE
The Tamarack Mid Cap Equity Fund's total return during the 12-month period
ending September 30, 2004 was +7.5% (Class A shares), compared to a total
return of +17.6% for the S&P 400 MidCap Index and +13.7% for the Russell MidCap
Growth Index.
With the markets' continued focus on low quality company stocks and a
significant value style bias, we were not able to keep pace with market indices
for this period. Our focus on strong fundamentally driven, high quality stocks
allowed us to participate in the markets' strength over the past 12 months, but
not overcome the market's short-term bias. Our performance was hurt by our
underweight positions in the high performing Energy, Utility and Materials
sectors. Performance in the more traditional growth sectors; Health Care,
Technology, and Consumer Discretionary, has lagged significantly over this time
period. Our holdings in Symantec, Fisher Scientific, and Expeditor's
International helped boost portfolio returns over the past 12 months.
- --------------------------------------------------------------------------------
OUTLOOK
Longer term, the outlook for mid-cap stocks continues to be quite favorable
despite some near-term headwinds. The issues at the forefront of investor's
minds have been well reported; higher energy costs, rising interest rates,
terrorism and the outcome of the U.S. Presidential election. Equities may remain
in a fairly wide trading range with investors languishing on the sidelines until
further clarification of the various issues becomes available.
Voyageur's philosophy is to own a diversified portfolio of high quality, cash
flow rich companies that provide longer-term investment opportunities regardless
of near-term market conditions. Recent meetings with senior management of
numerous companies have instilled confidence that fundamentals are strong and
business momentum continues to improve. Over the near-term, we continue to favor
Industrials, Consumer, Healthcare and select Technology names. The weakest
market area, Technology, may continue to experience aftershocks from the bubble
deflating. However, through careful stock selection there are exceptions. In our
view, the exceptions likely would be those companies in niche markets, dominant
players or those companies providing "new" technology. These are the types of
companies owned in Voyageur portfolios. As of September 30, the mid-cap growth
portfolio contains 44 stocks. Recent additions include: Aeropostale (specialty
apparel retailer), Alberto Culver (personal care products), East West Bancorp
(banking) and VCA Antech (animal health care).
[PHOTO]
David J. Cox, CFA
Managing Director
[PHOTO]
Forbes L. Watson
Vice President
12
================================================================================
MANAGEMENT DISCUSSION AND ANALYSIS
================================================================================
Tamarack Mid Cap Equity Fund
- --------------------------------------------------------------------------------
INVESTMENT OBJECTIVE
Long-term capital appreciation.
- --------------------------------------------------------------------------------
BENCHMARK
S&P Mid Cap 400 Index
- --------------------------------------------------------------------------------
ASSET ALLOCATION
(% OF FUND'S INVESTMENTS)
& TOP FIVE INDUSTRIES
(% OF FUND'S NET ASSETS)
[PIE CHART] TOP FIVE INDUSTRIES
Consumer Discretionary 23.9%
Common Stocks Healthcare 19.5%
98.8% Information Technology 17.7%
Investment Companies Industrials 17.6%
1.2% Financials 11.6%
- --------------------------------------------------------------------------------
TOP TEN HOLDINGS
(AS OF 9/30/04)
(% OF FUND'S NET ASSETS)
Investors Financial Services Plantronics, Inc. 3.37%
Corp. 3.98% Petsmart, Inc. 3.22%
Expeditors International CDW Corp. 3.10%
of Washington, Inc. 3.94% SCP Pool Corp. 3.06%
Smith International, Inc. 3.60% ChoicePoint, Inc. 3.03%
Whole Foods Market, Inc. 3.42% Microchip Technology, Inc. 3.00%
- --------------------------------------------------------------------------------
GROWTH OF $10,000 INITIAL
INVESTMENT OVER 10 YEARS
[FLOW CHART]
(DOLLARS IN THOUSANDS)
S&P MIDCAP
CLASS A 400 INDEX
------- ----------
9/30/1994 $ 9,425 $10,000.00
3/31/1995 10,046 10,539.61
9/30/1995 11,727 12,577.22
3/31/1996 13,343 13,542.26
9/30/1996 13,942 14,337.96
3/31/1997 15,294 14,980.45
9/30/1997 19,201 19,944.69
3/31/1998 21,135 22,326.14
9/30/1998 18,167 18,686.74
3/31/1999 21,939 22,426.37
9/30/1999 22,060 23,451.14
3/31/2000 29,203 30,968.25
9/30/2000 31,591 33,585.56
3/31/2001 26,658 28,813.34
9/30/2001 25,508 27,204.03
3/31/2002 31,585 34,255.16
9/30/2002 23,608 25,926.64
3/31/2003 23,808 26,222.13
9/30/2003 29,078 32,877.09
3/31/2004 33,672 39,097.31
9/30/2004 31,267 38,647.93
The graph reflects an initial investment of $10,000 over a 10 year period and is
based on Class A shares at net asset value. The Fund's maximum sales charge is
5.75%. The Fund's total return includes reinvested dividends and capital gains.
The Fund's total return also includes operating expenses that reduce return,
while the total return of the index does not. The graph does not reflect the
deduction of taxes that a shareholder would pay on fund distributions or
redemption of fund shares. Performance data quoted represents past performance.
Past performance is no guarantee of future results. Investment return and
principal value of an investment will fluctuate so that an investor's shares,
when redeemed, may be worth more or less than their original cost. Current
performance may be lower or higher than performance quoted. Performance of other
classes will vary due to differences in fee structures.
13
================================================================================
MANAGEMENT DISCUSSION AND ANALYSIS
================================================================================
Tamarack Small Cap Equity Fund
- --------------------------------------------------------------------------------
MARKET COMMENTARY
The Fund had a good year for the 12 months ending September 30, 2004. Both the
economy and corporate profits grew steadily during the 12 month period.
Investors were heartened that corporate profits and earnings growth
accelerated, while inflation, interest rates, and the unemployment rate
remained relatively low and stable. As we moved into the third calendar quarter
of 2004, stocks began to weaken as investors became concerned that the rate of
Gross Domestic Product (GDP) and corporate earnings growth would start to
decelerate. Lack of capital spending by corporations caused many sectors of the
economy, particularly the Technology and Telecommunications sectors, to exhibit
much less growth than was generally predicted. A sharp upward spike in energy
prices, continued terrorism threats, and the uncertainty of a presidential
election season also weighed negatively on investors' minds.
- --------------------------------------------------------------------------------
PERFORMANCE
An expanding economy usually bodes well for small growth stocks, and this year
was no exception. The Tamarack Small Cap Equity Fund's total return during the
12-month period ending September 30, 2004 was +17.28% (Class A shares),
compared to a return of +11.9% for the Russell 2000 Growth Index and +18.8% for
the Russell 2000 Index. Overall, this was the sixth consecutive year in which
small stocks have outperformed large stocks.
The Fund's performance benefited somewhat from being under weighted in
Technology stocks for the 12 month period, but greatly benefited from the
specific security selection of the Technology stocks we did own. The best
performing stocks in the Technology sector included Autodesk, Wind River
Systems and Scansource. Other stocks showing nice price appreciation for the
Fund were Shuffle Master (gaming equipment), Biosite (medical diagnostics), and
Cooper Companies (contact lenses and women's health care). The Fund's
performance was modestly hurt by security selection in the Consumer
Discretionary and Healthcare sectors. The Fund ended the fiscal year with 62
stocks in the portfolio.
- --------------------------------------------------------------------------------
OUTLOOK
On a near term basis, the sharp increase in energy prices may act as a drag on
the economy. We are also aware that GDP growth in the year after a presidential
election generally is weaker than normal. These two factors may cause stocks to
fluctuate in a wider than normal trading range. Until the economic picture
becomes clearer, we are not making any significant sector weighting bets. On a
longer-term basis, buying and holding high quality companies with financial
strength and consistent earnings growth, like those held in the Fund, should
prove to be rewarding for investors.
[PHOTO]
Kenneth A. Tyszko, CPA, CFA
Vice President
[PHOTO]
Forbes L. Watson
Vice President
14
================================================================================
MANAGEMENT DISCUSSION AND ANALYSIS
================================================================================
Tamarack Small Cap Equity Fund
- --------------------------------------------------------------------------------
INVESTMENT OBJECTIVE
Long-term capital appreciation.
- --------------------------------------------------------------------------------
BENCHMARK
Russell 2000 Index
- --------------------------------------------------------------------------------
ASSET ALLOCATION
(% OF FUND'S INVESTMENTS)
& TOP FIVE INDUSTRIES
(% OF FUND'S NET ASSETS)
[PIE CHART] TOP FIVE INDUSTRIES
Information Technology 24.3%
Common Stocks Healthcare 22.6%
98.0% Industrials 16.0%
Investment Companies Consumer Discretionary 11.3%
2.0% Financials 10.4%
- --------------------------------------------------------------------------------
TOP TEN HOLDINGS
(AS OF 9/30/04)
(% OF FUND'S NET ASSETS)
Zebra Technologies Corp., Shuffle Master, Inc. 2.47%
Class A 3.64% DRS Technologies, Inc. 2.45%
Cooper Cos., Inc. (The) 3.51% ANSYS, Inc. 2.39%
Knight Transportation, Inc. 2.98% ScansSource, Inc. 2.33%
United Natural Foods, Inc. 2.93% K-V Pharmaceutical Co.,
Simpson Manufacturing Co., Inc. 2.72% Class A 2.29%
- --------------------------------------------------------------------------------
GROWTH OF $10,000 INITIAL
INVESTMENT SINCE INCEPTION
[FLOW CHART]
(DOLLARS IN THOUSANDS)
RUSSELL
CLASS A 2000 INDEX
------- ----------
12/31/1994 $ 9,425 $10,000.00
3/31/1995 9,934 10,461.69
9/30/1995 11,296 12,572.55
3/31/1996 12,143 13,500.53
9/30/1996 12,870 14,223.80
3/31/1997 13,413 14,190.03
9/30/1997 18,457 18,944.54
3/31/1998 20,710 20,151.92
9/30/1998 16,100 15,341.94
3/31/1999 18,118 16,876.17
9/30/1999 20,352 18,267.67
3/31/2000 23,474 23,169.85
9/30/2000 23,943 22,540.58
3/31/2001 21,597 19,618.38
9/30/2001 19,961 17,760.15
3/31/2002 24,811 22,361.71
9/30/2002 19,296 16,108.22
3/31/2003 19,378 16,332.03
9/30/2003 24,094 21,987.53
3/31/2004 27,580 26,757.09
9/30/2004 28,256 26,115.47
The graph reflects an initial investment of $10,000 since inception of January
1, 1995 and is based on Class A shares at net asset value. The Fund's maximum
sales charge is 5.75%. The quoted performance of the Fund includes performance
of certain collective trust funds ("Commingled Accounts") advised by Centura
Bank prior to the establishment of the Fund on May 2, 1997. On that date, the
assets of the Commingled Accounts were equivalent in all material aspects to
those of the Fund. During that time, the Commingled Accounts were not registered
under the Investment Company Act of 1940 (the "1940 Act"), and therefore were
not subject to certain investment restrictions that are imposed under the 1940
Act. If the Commingled Accounts had been registered under the 1940 Act, the
Commingled Accounts' performance may have been adversely affected. Because the
Commingled Accounts did not charge any expenses, their performance has been
adjusted to reflect the Fund's estimated expenses at the time of its inception,
which was 1.50% of average daily net assets for Class A. The Fund's total return
includes reinvested dividends and capital gains. The Fund's total return also
includes operating expenses that reduce return, while the total return of the
index does not. The graph does not reflect the deduction of taxes that a
shareholder would pay on fund distributions or redemption of fund shares.
Performance data quoted represents past performance. Past performance is no
guarantee of future results. Investment return and principal value of an
investment will fluctuate so that an investor's shares, when redeemed, may be
worth more or less than their original cost. Current performance may be lower or
higher than performance quoted. Performance of other classes will vary due to
differences in fee structures.
15
================================================================================
MANAGEMENT DISCUSSION AND ANALYSIS
================================================================================
Tamarack Enterprise Fund
- --------------------------------------------------------------------------------
MARKET COMMENTARY
The equity investment environment in late 2003 and early 2004 favored
speculation, as the stocks of companies with weak profitability characteristics
outperformed companies with more stable and predictable earnings. The market
also favored small cap companies and those market sectors expected to do well
during periods of economic recovery during this period.
Moving into 2004, the pace of economic recovery grew, but an employment picture
featuring lackluster job growth provoked concerns, as did renewed fears of
terrorism and rising oil prices. In the spring of 2004, investors began to
embrace a more conservative investment posture, as short-term interest rates
began to rise. During the third calendar quarter, investors began to seriously
question the sustainability of the economic recovery, as spiraling oil prices,
rising interest rates, an uncertain U.S. Presidential election, and mixed
economic signals conspired to deteriorate equity market confidence. U.S. equity
markets ended the Fund's fiscal year on a lackluster note featuring some strong
economic and market fundamentals but continued concerns over uncertainty
factors impacting market gains.
- --------------------------------------------------------------------------------
PERFORMANCE
The Enterprise Fund realized strong results during the 12-month period ended
September 30, 2004, returning +22.90% (Class A shares) capitalizing on
favorable investor sentiment for small cap stocks during the first half of the
period. The Fund outperformed the Russell 2000 Index, which returned +18.77%
and compared favorably to the Russell 2000 Value Index, which returned +25.66%.
During the 12-month period ended September 30, 2004, the Fund was positioned
advantageously in economically sensitive holdings that benefited as economic
recovery took hold. The Fund's stock selection was most favorable in the
Technology, Financial Services, and Consumer Discretionary Sectors. Positive
gains were recorded by the Fund in all economic sector categories, and the Fund
underperformed the Russell 2000 Index in only two sectors, Materials and
Processing and Other Energy.
- --------------------------------------------------------------------------------
OUTLOOK
U.S. equities are often particularly volatile prior to beginning a new climb in
price. Uncertainty over the U.S. economy and concerns over war and terrorism are
enough to keep equity investors worried for the near term. Yet it is also worth
noting the important fundamental factors present that are more optimistic: U.S.
GDP continues to grow at a solid pace, the employment picture is improving,
consumer confidence remains at a high level, home building is robust, and
inflation remains quite low. In our opinion, these fundamentals provide a solid
foundation for favorable equity market valuation multiples for the foreseeable
future. We also believe the Fund continues to be positioned for superior
performance relative to the Russell 2000 Index(R) and with less risk by
emphasizing thorough research and strong fundamental stock selection.
[PHOTO]
Renie K. Heebner, CFA
Managing Director
[PHOTO]
Lance F. James
Managing Director
16
================================================================================
MANAGEMENT DISCUSSION AND ANALYSIS
================================================================================
Tamarack Enterprise Fund
- --------------------------------------------------------------------------------
INVESTMENT OBJECTIVE
Long-term growth of capital.
- --------------------------------------------------------------------------------
BENCHMARK
Russell 2000 Value Index
- --------------------------------------------------------------------------------
ASSET ALLOCATION
(% OF FUND'S INVESTMENTS)
& TOP FIVE INDUSTRIES
(% OF FUND'S NET ASSETS)
[PIE CHART] TOP FIVE INDUSTRIES
Financials 18.55%
Common Stocks 95.5% Industrials 16.37%
Investment Companies 3.6% Information Technology 13.17%
U.S. Government Agency Materials 10.67%
Obligations 0.9% Other 8.26%
- --------------------------------------------------------------------------------
TOP TEN HOLDINGS
(AS OF 9/30/04)
(% OF FUND'S NET ASSETS)
Movado Group, Inc. 2.78% Hanmi Financial Corp. 2.14%
Terex Corp. 2.77% ABM Industries, Inc. 2.06%
Tetra Technologies, Inc. 2.56% Universal Stainless & Alloy
Encore Wire Corp. 2.51% Products, Inc. 1.90%
EDO Corp. 2.50% Gulf Island Fabrication,
Keith Cos., Inc. (The) 2.15% Inc. 1.87%
- --------------------------------------------------------------------------------
GROWTH OF $10,000 INITIAL
INVESTMENT OVER 10 YEARS
[FLOW CHART]
(DOLLARS IN THOUSANDS)
RUSSELL 2000
CLASS A CLASS S VALUE INDEX
------- ------- -----------
9/30/1994 $ 9,425 $10,000 $10,000.00
3/31/1995 9,758 10,365 10,063.78
9/30/1995 10,734 11,416 11,857.59
3/31/1996 11,669 12,427 12,738.50
9/30/1996 12,241 13,052 13,456.38
3/31/1997 13,652 14,574 14,773.86
9/30/1997 17,771 18,995 19,195.45
3/31/1998 18,344 19,631 21,147.87
9/30/1998 14,418 15,449 16,740.13
3/31/1999 13,432 14,410 16,488.97
9/30/1999 14,184 15,236 17,715.51
3/31/2000 15,873 17,071 18,674.62
9/30/2000 16,587 17,862 20,436.40
3/31/2001 16,688 17,993 22,307.68
9/30/2001 18,326 19,784 21,582.68
3/31/2002 24,253 26,215 27,604.14
9/30/2002 18,850 20,400 21,266.39
3/31/2003 19,562 21,197 21,179.59
9/30/2003 25,432 27,592 28,000.20
3/31/2004 31,732 34,469 34,837.63
9/30/2004 31,255 34,013 35,185.45
The graph reflects an initial investment of $10,000 over a 10 year period and is
based on Class A shares at net asset value. The inception date for Class A
shares of the Fund is April 19, 2004. All performance shown for Class A shares
prior to the inception date is based on the performance of the Class S shares of
the Fund, adjusted to reflect the fees, expenses and maximum sales charges of
Class A shares. The Fund's maximum sales charge is 5.75%. The Fund's total
return includes reinvested dividends and capital gains. The Fund's total return
also includes operating expenses that reduce return, while the total return of
the index does not. The graph does not reflect the deduction of taxes that a
shareholder would pay on fund distributions or redemption of fund shares.
Performance data quoted represents past performance. Past performance is no
guarantee of future results. Investment return and principal value of an
investment will fluctuate so that an investor's shares, when redeemed, may be
worth more or less than their original cost. Current performance may be lower or
higher than performance quoted. Performance of other classes will vary due to
differences in fee structures.
17
================================================================================
MANAGEMENT DISCUSSION AND ANALYSIS
================================================================================
Tamarack Enterprise Small Cap Fund
- --------------------------------------------------------------------------------
MARKET COMMENTARY
The equity investment environment in late 2003 and early 2004, favored
speculation, as the stocks of companies with weak profitability characteristics
outperformed companies with more stable and predictable earnings. The market
also favored small cap companies and those market sectors expected to do well
during periods of economic recovery during this period.
Moving into 2004, the pace of economic recovery grew, but an employment picture
featuring lackluster job growth provoked concerns, as did renewed fears of
terrorism and rising oil prices. In the spring of 2004, investors began to
embrace a more conservative investment posture, as short-term interest rates
began to rise. During the third calendar quarter, investors began to seriously
question the sustainability of the economic recovery, as spiraling oil prices,
rising interest rates, an uncertain U.S. Presidential election, and mixed
economic signals conspired to deteriorate equity market confidence. U.S. equity
markets ended the Fund's fiscal year on a lackluster note featuring some strong
economic and market fundamentals but continued concerns over uncertainty
factors impacting market gains.
- --------------------------------------------------------------------------------
PERFORMANCE
The Enterprise Small Cap Fund realized highly favorable absolute results during
the 12-month period ending September 30, 2004, returning +23.61% (Class A
shares) and capitalizing on positive investor sentiment for small cap stocks,
particularly during the first half of the period. The Fund handily outperformed
its benchmark, the Russell 2000 Index, which returned +18.77% during the same
period. The Fund's strongest results during the 12-month period ending
September 30, 2004 were generated in the Producer Durables and Financial
Services sectors where many Fund holdings were supported by improving economic
fundamentals. Financial Services stock selection was particularly noteworthy,
as the Fund realized favorable gains from a number of regional bank holdings.
Stock selection in the Technology sector also added considerable value,
particularly relative to the benchmark. The most challenging area for the Fund
was the Healthcare sector due to pockets of stock-specific weakness.
- --------------------------------------------------------------------------------
OUTLOOK
U.S. equities are often particularly volatile prior to beginning a new climb in
price. Uncertainty over the U.S. economy and concerns over war and terrorism are
enough to keep equity investors worried for the near term. Yet it is also worth
noting the important fundamental factors present that are more optimistic: U.S.
GDP continues to grow at a solid pace, the employment picture is improving,
consumer confidence remains at a high level, home building is robust, and
inflation remains quite low. In our opinion, these fundamentals provide a solid
foundation for favorable equity market valuation multiples for the foreseeable
future.
[PHOTO]
Lance F. James
Managing Director
18
================================================================================
MANAGEMENT DISCUSSION AND ANALYSIS
================================================================================
Tamarack Enterprise Small Cap Fund
- --------------------------------------------------------------------------------
INVESTMENT OBJECTIVE
Long-term growth of capital.
- --------------------------------------------------------------------------------
BENCHMARK
Russell 2000 Index
- --------------------------------------------------------------------------------
ASSET ALLOCATION
(% OF FUND'S INVESTMENTS)
& TOP FIVE INDUSTRIES
(% OF FUND'S NET ASSETS)
[PIE CHART] TOP FIVE INDUSTRIES
Consumer Discretionary 26.4%
Common Stocks Financials 18.4%
97.2% Industrials 15.5%
Investment Companies Materials 15.1%
2.8% Healthcare 9.7%
- --------------------------------------------------------------------------------
TOP TEN HOLDINGS
(AS OF 9/30/04)
(% OF FUND'S NET ASSETS)
Polymedica Corp. 3.91% Cash America International, Inc. 2.54%
Carlisle Co. 3.69% Spartech Corp. 2.53%
Movado Group, Inc. 3.03% ElkCorp 2.53%
CUNO, Inc. 2.87% ADVO, Inc. 2.36%
Mohawk Industries Co. 2.70% Hughes Supply, Inc. 2.11%
- --------------------------------------------------------------------------------
GROWTH OF $10,000 INITIAL
INVESTMENT OVER 10 YEARS
[FLOW CHART]
(DOLLARS IN THOUSANDS)
RUSSELL
CLASS A CLASS S 2000 INDEX
------- ------- ----------
9/30/1994 $ 9,425 $10,000 $10,000.00
3/31/1995 9,408 9,996 10,268.22
9/30/1995 10,355 11,016 12,340.04
3/31/1996 12,205 13,001 13,250.86
9/30/1996 12,770 13,620 13,960.76
3/31/1997 13,867 14,807 13,927.61
9/30/1997 18,292 19,558 18,594.19
3/31/1998 19,949 21,356 19,779.24
9/30/1998 15,299 16,398 15,058.22
3/31/1999 16,002 17,173 16,564.07
9/30/1999 17,455 18,755 17,929.83
3/31/2000 19,069 20,515 22,741.37
9/30/2000 20,732 22,333 22,123.73
3/31/2001 20,533 22,145 19,255.57
9/30/2001 19,560 21,122 17,431.71
3/31/2002 24,069 26,023 21,948.16
9/30/2002 18,955 20,520 15,810.32
3/31/2003 18,667 20,233 16,029.99
9/30/2003 24,500 26,589 21,580.90
3/31/2004 29,907 32,496 26,262.25
9/30/2004 30,284 32,940 25,632.51
The graph reflects an initial investment of $10,000 over a 10 year period and is
based on Class A shares at net asset value. The inception date for Class A
shares of the Fund is April 19, 2004. All performance shown for Class A shares
prior to the inception date is based on the performance of the Class S shares of
the Fund, adjusted to reflect the fees, expenses and maximum sales charges of
Class A shares. The Fund's maximum sales charge is 5.75%. The Fund's total
return includes reinvested dividends and capital gains. The Fund's total return
also includes operating expenses that reduce return, while the total return of
the index does not. The graph does not reflect the deduction of taxes that a
shareholder would pay on fund distributions or redemption of fund shares.
Performance data quoted represents past performance. Past performance is no
guarantee of future results. Investment return and principal value of an
investment will fluctuate so that an investor's shares, when redeemed, may be
worth more or less than their original cost. Current performance may be lower or
higher than performance quoted. Performance of other classes will vary due to
differences in fee structures.
19
================================================================================
MANAGEMENT DISCUSSION AND ANALYSIS
================================================================================
Tamarack Value Fund
- --------------------------------------------------------------------------------
MARKET COMMENTARY
It was a volatile U.S. equity environment during the 12-month period ended
September 30, 2004. During the first half of the period, the market favored
small cap companies, market sectors expected to benefit from an economic
recovery, and stocks of companies with weak quality and profitability
characteristics. This picture changed somewhat during the latter half of the
Fund's period, however, as investors became concerned over lackluster job
growth, rising oil prices and renewed fears of terrorism. Investors began to
embrace a more conservative investment posture, as the character of financial
markets changed due to short-term interest rates rising. Equity markets ended
the fiscal year on a lackluster note, featuring some strong economic and market
fundamentals but continued concerns over uncertainty factors impacting market
gains.
- --------------------------------------------------------------------------------
PERFORMANCE
The fiscal year featured favorable absolute returns for the Value Fund, +17.99%
(Class A shares), but the Fund underperformed its primary benchmark, the
Russell 1000 Value Index (+20.52%). However, the Fund strongly outperformed its
secondary benchmark, the S&P 500 (+13.9%). During the fourth quarter of
calendar year 2003, the Fund was challenged by equity market performance that
favored areas of the market exhibiting the weakest fundamentals and highest
risk profiles. This runs contrary to the Fund's strong emphasis on fundamentals
and detracted from period results. Relative to the Russell 1000 Value Index,
stock selection was weak for the Fund in the Financial Services, Integrated
Oils, and Materials and Processing sectors. However, in each area, the Fund did
generate positive results. Areas where stock selection for the Fund was highly
favorable were the Consumer Discretionary, Technology, and Producer Durables
sectors. Additionally, Healthcare positions, while negative, outperformed
corresponding sector positions for the Russell 1000 Value Index.
- --------------------------------------------------------------------------------
OUTLOOK
Stocks often climb a "wall of worry" as they start into a new rally phase.
Clearly, there are more than enough issues to keep investors worried. However,
there are also important fundamental factors present that may make investors
more optimistic. U.S. GDP continues to show solid growth, the employment picture
is improving, housing starts are strong, and inflation remains low. In our
opinion, these sound fundamentals provide a solid basis for improving equity
market valuations over the foreseeable future.
[PHOTO]
Anthony M. Maramarco, PhD, CFA
Managing Director
[PHOTO]
Michael P. Stack, CFA
Managing Director
20
================================================================================
MANAGEMENT DISCUSSION AND ANALYSIS
================================================================================
Tamarack Value Fund
- --------------------------------------------------------------------------------
INVESTMENT OBJECTIVE
Long-term growth of capital and income.
- --------------------------------------------------------------------------------
BENCHMARK
Russell 1000 Value Index
- --------------------------------------------------------------------------------
ASSET ALLOCATION
(% OF FUND'S INVESTMENTS)
& TOP FIVE INDUSTRIES
(% OF FUND'S NET ASSETS)
[PIE CHART] TOP FIVE INDUSTRIES
Financials 30.2%
Common Stocks Consumer Discretionary 14.3%
99.7% Industrials 11.8%
Investment Companies Materials 9.3%
0.3% Energy 8.0%
- --------------------------------------------------------------------------------
TOP TEN HOLDINGS
(AS OF 9/30/04)
(% OF FUND'S NET ASSETS)
Exxon Mobil Corp. 3.93% McDonald's Corp. 3.02%
Weyerhaeuser Co. 3.25% Apple Computer, Inc. 2.93%
Citigroup, Inc. 3.21% Freddie Mac 2.88%
Diageo PLC ADR 3.04% Verizon Communications Inc. 2.84%
Limited Brands, Inc. 3.04% American International Group, Inc. 2.82%
- --------------------------------------------------------------------------------
GROWTH OF $10,000 INITIAL
INVESTMENT OVER 10 YEARS
[FLOW CHART]
(DOLLARS IN THOUSANDS)
RUSSELL 1000
CLASS A CLASS S VALUE INDEX
------- ------- ------------
9/30/1994 $ 9,425 $10,000 $10,000.00
3/31/1995 10,148 10,781 10,780.38
9/30/1995 11,808 12,561 12,771.80
3/31/1996 13,059 13,909 14,390.45
9/30/1996 13,803 14,719 15,063.87
3/31/1997 15,174 16,202 16,991.38
9/30/1997 19,004 20,317 21,438.06
3/31/1998 21,335 22,837 25,006.44
9/30/1998 17,447 18,699 22,208.40
3/31/1999 19,826 21,274 26,266.77
9/30/1999 19,754 21,224 26,365.57
3/31/2000 18,900 20,331 27,931.15
9/30/2000 20,098 21,647 28,716.02
3/31/2001 21,195 22,857 28,006.68
9/30/2001 19,890 21,476 26,157.03
3/31/2002 23,027 24,894 29,234.74
9/30/2002 18,031 19,517 21,723.92
3/31/2003 16,845 18,256 22,571.79
9/30/2003 19,917 21,613 27,017.41
3/31/2004 22,808 24,780 31,785.65
9/30/2004 23,500 25,558 32,560.15
The graph reflects an initial investment of $10,000 over a 10 year period and is
based on Class A shares at net asset value. The inception date for Class A
shares of the Fund is April 19, 2004. All performance shown for Class A shares
prior to the inception date is based on the performance of the Class S shares of
the Fund, adjusted to reflect the fees, expenses and maximum sales charges of
Class A shares. The Fund's maximum sales charge is 5.75%. The Fund's total
return includes reinvested dividends and capital gains. The Fund's total return
also includes operating expenses that reduce return, while the total return of
the index does not. The graph does not reflect the deduction of taxes that a
shareholder would pay on fund distributions or redemption of fund shares.
Performance data quoted represents past performance. Past performance is no
guarantee of future results. Investment return and principal value of an
investment will fluctuate so that an investor's shares, when redeemed, may be
worth more or less than their original cost. Current performance may be lower or
higher than performance quoted. Performance of other classes will vary due to
differences in fee structures.
21
================================================================================
MANAGEMENT DISCUSSION AND ANALYSIS
================================================================================
Tamarack Microcap Value Fund
- --------------------------------------------------------------------------------
MARKET COMMENTARY
It was a volatile U.S. equity environment during the 12-month period ended
September 30, 2004. During the first half of the fiscal year, the market
favored small cap companies, market sectors expected to benefit from an
economic recovery, and stocks of companies with weak quality and profitability
characteristics. This picture changed somewhat during the latter half of the
Fund's fiscal year, however, as investors became concerned over lackluster job
growth, rising oil prices and renewed fears of terrorism. Investors began to
embrace a more conservative investment posture, as the character of financial
markets changed due to short-term interest rates rising. The Fund's fiscal year
showed equity markets ending on a lackluster note, featuring some strong
economic and market fundamentals but continued concerns over uncertainty
factors impacting market gains.
- --------------------------------------------------------------------------------
PERFORMANCE
During the fiscal year, the Fund had very strong returns, +25.49 (Class A
shares) versus +25.66% for the Russell 2000 Value Index, the Fund's benchmark,
and +18.77% for the Russell 2000 Index. The Fund clearly benefited from an
environment of largely strong investor sentiment for the smallest of small cap
stocks. The Fund also was helped during the period by a market environment that
was generally supportive of its prescribed methodology of overweighting and
underweighting specific economic sector categories. This was seen most clearly
in the financial services sector where the Fund's prescribed underweight
relative to the Russell 2000 Value Index added considerable value. The
strongest areas of relative stock selection for the Fund were the Health Care,
Technology, and Consumer Staples sectors. Holdings in the Producer Durables and
Autos and Transportation sectors also contributed to Fund results. The Fund
realized positive gains in all economic sector categories during the period,
but underperformed the Russell 2000 Value Index in Consumer Discretionary,
Materials and Processing, and Financial
Services.
- ---------------------------------------------------------------------------
OUTLOOK
Stocks often climb a "wall of worry" as they start into a new rally phase.
Clearly, there are more than enough issues to keep investors worried. However,
there are also important fundamental factors present that may make investors
more optimistic. U.S. GDP continues to show solid growth, the employment picture
is improving, housing starts are strong, and inflation remains low.In our
opinion, these sound fundamentals provide a solid basis for improving equity
market valuations over the foreseeable future.
[PHOTO]
Anthony M. Maramarco, Phd, CFA
Managing Director
[PHOTO]
Michael P. Stack, CFA
Managing Director
22
================================================================================
MANAGEMENT DISCUSSION AND ANALYSIS
================================================================================
Tamarack Microcap Value Fund
- --------------------------------------------------------------------------------
INVESTMENT OBJECTIVE
Long-term growth of capital.
- --------------------------------------------------------------------------------
BENCHMARK
Russell 2000 Value Index
- --------------------------------------------------------------------------------
ASSET ALLOCATION
(% OF FUND'S INVESTMENTS)
& TOP FIVE INDUSTRIES
(% OF FUND'S NET ASSETS)
[PIE CHART] TOP FIVE INDUSTRIES
Consumer Discretionary 28.1%
Common Stocks 97.1% Financials 17.1%
U.S. Government Agency Industrials 14.9%
Obligations 2.2% Materials 10.2%
Investment Companies 0.7% Information Technology 8.2%
- --------------------------------------------------------------------------------
TOP TEN HOLDINGS
(AS OF 9/30/04)
(% OF FUND'S NET ASSETS)
FHLB 1.51%, 10/01/04 2.27% Credit Acceptance Corp. 1.06%
Technical Olympic USA, Inc. 1.32% AMERCO 1.03%
Meritage Corp. 1.32% Finish Line, Inc. (The), Class A 0.95%
URS Corp. 1.21% Stewart Information Services Corp. 0.93%
William Lyon Homes 1.09% Old Dominion Freight Line, Inc. 0.93%
- --------------------------------------------------------------------------------
GROWTH OF $10,000 INITIAL
INVESTMENT OVER 10 YEARS
[FLOW CHART]
(DOLLARS IN THOUSANDS)
RUSSELL
CLASS A CLASS S 2000 INDEX
------- ------- ----------
9/30/1994 $ 9,425 $10,000 $10,000.00
3/31/1995 9,640 10,244 10,063.78
9/30/1995 11,105 11,815 11,857.59
3/31/1996 11,912 12,689 12,738.50
9/30/1996 12,287 13,104 13,456.38
3/31/1997 13,343 14,248 14,773.86
9/30/1997 17,568 18,783 19,195.45
3/31/1998 18,542 19,849 21,147.87
9/30/1998 15,849 16,988 16,740.13
3/31/1999 15,413 16,541 16,488.97
9/30/1999 17,100 18,374 17,715.51
3/31/2000 19,654 21,145 18,674.62
9/30/2000 20,973 22,592 20,436.40
3/31/2001 20,751 22,380 22,307.68
9/30/2001 21,353 23,058 21,582.68
3/31/2002 26,281 28,414 27,604.14
9/30/2002 20,782 22,497 21,266.39
3/31/2003 20,003 21,681 21,179.59
9/30/2003 27,807 30,177 28,000.20
3/31/2004 35,251 38,302 34,837.63
9/30/2004 34,894 37,980 35,185.45
The graph reflects an initial investment of $10,000 over a 10 year period and is
based on Class A shares at net asset value. The inception date for Class A
shares of the Fund is April 19, 2004. All performance shown for Class A shares
prior to the inception date is based on the performance of the Class S shares of
the Fund, adjusted to reflect the fees, expenses and maximum sales charges of
Class A shares. The Fund's maximum sales charge is 5.75%. The Fund's total
return includes reinvested dividends and capital gains. The Fund's total return
also includes operating expenses that reduce return, while the total return of
the index does not. The graph does not reflect the deduction of taxes that a
shareholder would pay on fund distributions or redemption of fund shares.
Performance data quoted represents past performance. Past performance is no
guarantee of future results. Investment return and principal value of an
investment will fluctuate so that an investor's shares, when redeemed, may be
worth more or less than their original cost. Current performance may be lower or
higher than performance quoted. Performance of other classes will vary due to
differences in fee structures.
23
================================================================================
MANAGEMENT DISCUSSION AND ANALYSIS
================================================================================
Tamarack Small Cap International Fund
- --------------------------------------------------------------------------------
MARKET COMMENTARY
Most international equity markets rose in the last twelve months. Small
companies continue to add value to global portfolios, outperforming large ones
on a 1-, 2-, 3-, 4, and 5-year periods. Interest rates, oil prices, Iraq and
elections are foremost investor concerns.
- --------------------------------------------------------------------------------
PERFORMANCE
The Fund trailed the MSCI International Small Cap Index during the 12 months
ending September 30, 2004 (11.96% versus 24.38%). Lagging performance was due
in part to an underweight in Japan and in part from general weakness among a
few of our names. We are disappointed but not concerned and in fact see this as
an opportunity for long-term investors. In the past when we have seen our
companies fall below the values that their fundamentals would dictate, we have
bounced back strongly and quickly.
It may be choppy over the next months as the market digests higher oil prices,
the U.S. Presidential election, the questions of whether economic recovery
begins in Europe and ends in Japan and the looming threat of terrorism. More
specifically, the Technology sector, where we have a reasonable exposure, is
sending mixed signals and is roiling markets. We create a portfolio of well
positioned, niche companies and it is not surprising to find these businesses in
the Technology sector.
In fact, some names that were strong in the beginning of the period have been
weak recently as the Technology sector flops around amid this uncertainty. Good
results boosted these names earlier in the period but fundamentals haven't
protected them since. GSI, up over 100% for the first nine months, was the
Fund's worst performer for the third calendar quarter. GSI raised their
forecasts after strong earnings reports but shares continued to fall.
Two of our stronger performers - both outside the Technology sector - were
Fisher & Paykel Healthcare (FPH) and Techem, reinforcing our belief that good
stable businesses eventually create value. FPH, a New Zealand-based company,
reached a two-year high recently as optimism regarding new products lifted
shares. FPH is the leading manufacturer of heated humidification products and
systems for use in respiratory care. It is using its technology now for the
treatment of sleep apnea, a promising market. FPH
recently added to its range of breathing aids with new flow generators, masks
and tubing. They also introduced a new range of breathing aids and devices to
assist laparoscopic surgery. FPH has a track record in improving shareholder
value through product innovation. Another big gainer was Techem, contributing
more than 100 bps to performance, on strong financial results. Techem of
Germany provides energy and water measuring and billing services. Techem
recently raised earnings guidance for the remainder of the year as its
visibility improved.
[PHOTO]
Adam Schor, CFA
Portfolio Manager
[PHOTO]
Kevin Beck, CFA
Equity Analyst
[PHOTO]
John C. Fenley, CFA
- --------------------------------------------------------------------------------
OUTLOOK
We believe that the shares of some of our underperforming holdings are too
cheap. We felt the same way during the third quarters of 2001 and 2002 and soon
after saw strong rallies. We don't let dramatic market swings panic us and we
don't change our investment process. Our businesses seem as solid as they have
ever been.
24
================================================================================
MANAGEMENT DISCUSSION AND ANALYSIS
================================================================================
Tamarack Small Cap International Fund
- --------------------------------------------------------------------------------
INVESTMENT OBJECTIVE
Long-term growth of capital.
- --------------------------------------------------------------------------------
BENCHMARK
MSCI EAFE Small-Cap Index
- --------------------------------------------------------------------------------
ASSET ALLOCATION
(% OF FUND'S INVESTMENTS)
& TOP FIVE INDUSTRIES
(% OF FUND'S NET ASSETS)
[PIE CHART] TOP FIVE INDUSTRIES
Industrials 23.3%
Common Stocks Information Technology 22.6%
93.8% Consumer Discretionary 22.1%
Investment Companies Healthcare 10.5%
6.2% Materials 4.9%
- --------------------------------------------------------------------------------
TOP TEN HOLDINGS
(AS OF 9/30/04)
(% OF FUND'S NET ASSETS)
Techem AG 4.13% Neopost SA 3.34%
Interpump Group SpA 4.05% Vtech Holdings Ltd. 3.32%
T&F Informa Group PLC 3.46% Elmos Semiconductor AG 3.27%
Fisher & Paykel Healthcare 3.41% McBride PLC 3.25%
SBS Broadcasting SA 3.37% GSI Lumonics, Inc. 3.22%
- --------------------------------------------------------------------------------
GROWTH OF $10,000 INITIAL
INVESTMENT SINCE INCEPTION
[FLOW CHART]
(DOLLARS IN THOUSANDS)
MSCI EAFE
SMALL-CAP
CLASS A CLASS S INDEX
------- ------- ----------
12/19/2000 $ 9,425 $10,000 $10,000.00
3/31/2001 7,987 8,480 9,275.35
9/30/2001 6,575 6,990 8,078.45
3/31/2002 7,359 7,833 9,045.24
9/30/2002 5,454 5,812 7,794.37
3/31/2003 5,794 6,182 7,472.34
9/30/2003 8,685 9,279 10,745.74
3/31/2004 10,250 10,965 13,669.19
9/30/2004 9,724 10,414 13,366.01
The graph reflects an initial investment of $10,000 since inception of December
19, 2000 and is based on Class A shares at net asset value. The inception date
for Class A shares of the Fund is April 19, 2004. All performance shown for
Class A shares prior to the inception date is based on the performance of the
Class S shares of the Fund, adjusted to reflect the fees, expenses and maximum
sales charges of Class A shares. The Fund's maximum sales charge is 5.75%. The
Fund's total return includes reinvested dividends and capital gains. The Fund's
total return also includes operating expenses that reduce return, while the
total return of the index does not. The graph does not reflect the deduction of
taxes that a shareholder would pay on fund distri butions or redemption of fund
shares. Performance data quoted represents past performance. Past performance is
no guarantee of future results. Investment return and principal value of an
investment will fluctuate so that an investor's shares, when redeemed, may be
worth more or less than their original cost. Current performance may be lower or
higher than performance quoted. Performance of other classes will vary due to
differences in fee structures.
25
================================================================================
FINANCIAL STATEMENTS
================================================================================
Statements of Assets and Liabilities
- --------------------------------------------------------------------------------
SEPTEMBER 30, 2004
TAMARACK LARGE CAP TAMARACK MID CAP TAMARACK SMALL CAP
EQUITY FUND EQUITY FUND EQUITY FUND
------------------- ------------------ --------------------
ASSETS:
Investments, at market value (cost
$184,779,243; $115,697,719
and $14,630,627, respectively) $197,930,221 $118,025,560 $18,292,159
Interest and dividends receivable 158,305 17,807 6,210
Cash - 76,723 -
Receivable for capital shares issued 2,564 111,895 4,330
Receivable for investments sold 6,609,049 - 369,644
Receivable from advisor - - 40,675
Reclaims receivable - - -
Prepaid expenses 37,276 25,496 16,745
------------- ------------ -----------
Total Assets 204,737,415 118,257,481 18,729,763
------------- ------------ -----------
LIABILITIES:
Payable for capital shares redeemed 5,654,605 39,551 26,218
Payable for investments purchased - - 317,585
Accrued expenses and other payables:
Investment advisory fees 15,269 36,374 -
Administration fees 16,891 9,779 1,499
Distribution fees 7,483 72,374 6,305
Other 49,241 32,294 30,203
------------- ------------ -----------
Total Liabilities 5,743,489 190,372 381,810
------------- ------------ -----------
Net Assets $198,993,926 $118,067,109 $18,347,953
============= ============ ===========
NET ASSETS CONSIST OF:
Capital $241,963,173 $104,400,170 $13,225,134
Undistributed net investment
income (loss) - - -
Accumulated net realized gains
(losses) from investment and
foreign currency transactions (56,120,225) 11,339,098 1,461,287
Net unrealized appreciation on
investments and translation of
assets and liabilities in foreign
currency 13,150,978 2,327,841 3,661,532
------------- ------------ -----------
Net Assets $198,993,926 $118,067,109 $18,347,953
============= ============ ===========
NET ASSETS:
Class A $ 10,614,012 $ 69,979,428 $ 8,139,824
Class I 19,555,885 47,778,168 9,952,056
Class C 3,138 12,721 213,629
Class R 65,211 72,042 21,674
Class S 168,755,680 224,750 20,770
------------- ------------ -----------
Total $198,993,926 $118,067,109 $18,347,953
============= ============ ===========
SHARES OUTSTANDING:
Class A 1,074,504 6,049,736 590,555
Class I 1,960,621 4,045,702 710,219
Class C 319 1,103 15,553
Class R 6,607 6,236 1,575
Class S 16,920,125 19,026 1,483
------------- ------------ -----------
Total 19,962,176 10,121,803 1,319,385
============= ============ ===========
26
================================================================================
FINANCIAL STATEMENTS
================================================================================
Statements of Assets and Liabilities (cont.)
- --------------------------------------------------------------------------------
TAMARACK LARGE CAP TAMARACK MID CAP TAMARACK SMALL CAP
EQUITY FUND EQUITY FUND EQUITY FUND
------------------- ------------------ --------------------
NET ASSET VALUES:
Class A (a) $ 9.88 $ 11.57 $ 13.78
======= ======= =======
Class I $ 9.97 $ 11.81 $ 14.01
======= ======= =======
Class C (b) $ 9.85 $ 11.53 $ 13.74
======= ======= =======
Class R $ 9.87 $ 11.55 $ 13.76
======= ======= =======
Class S $ 9.97 $ 11.81 $ 14.01
======= ======= =======
MAXIMUM OFFERING PRICE PER SHARE:
Class A $ 10.48 $ 12.28 $ 14.62
======= ======= =======
Maximum Sales Charge -- Class A 5.75% 5.75% 5.75%
======= ======= =======
(a) For Class A shares, redemption price per share is reduced by 1.00% for
sales of shares within 12 months of purchase (only applicable on purchases
of $1 million or more).
(b) For Class C shares, redemption price per share is reduced by 1.00% for
sales of shares within 12 months of purchase.
SEE NOTES TO FINANCIAL STATEMENTS.
27
================================================================================
FINANCIAL STATEMENTS
================================================================================
Statements of Assets and Liabilities (cont.)
- --------------------------------------------------------------------------------
SEPTEMBER 30, 2004
TAMARACK TAMARACK ENTERPRISE TAMARACK
ENTERPRISE FUND SMALL CAP FUND VALUE FUND
----------------- --------------------- ---------------
ASSETS:
Investments, at market value (cost
$270,630,128; $52,351,603 and
$244,730,852, respectively) $349,455,692 $76,373,662 $379,283,412
Interest and dividends receivable 252,819 24,194 635,335
Cash 128 1,248 -
Receivable for capital shares issued 26,866,113 54,287 33,381
Receivable for investments sold 410,961 27,843 1,476,645
Prepaid expenses 14,927 10,110 11,376
------------ ----------- ------------
Total Assets 377,000,640 76,491,344 381,440,149
------------ ----------- ------------
LIABILITIES:
Payable for capital shares redeemed 536,482 130,561 550,496
Payable for investments purchased 535,585 81,145 767,020
Accrued expenses and other payables:
Investment advisory fees 191,340 92,693 195,764
Administration fees 28,135 6,165 31,175
Distribution fees 1,719 1,453 325
Other 109,110 44,814 146,648
------------ ----------- ------------
Total Liabilities 1,402,371 356,831 1,691,428
------------ ----------- ------------
Net Assets $375,598,269 $76,134,513 $379,748,721
============ =========== ============
NET ASSETS CONSIST OF:
Capital $282,550,844 $46,417,144 $221,660,517
Undistributed net investment
income (loss) 357,106 - 2,442,446
Accumulated net realized gains
(losses) from investment and
foreign currency transactions 13,864,755 5,695,310 21,093,198
Net unrealized appreciation on
investments and translation of
assets and liabilities in foreign
currency 78,825,564 24,022,059 134,552,560
------------ ----------- ------------
Net Assets $375,598,269 $76,134,513 $379,748,721
============ =========== ============
NET ASSETS:
Class A $ 3,359,235 $ 1,770,870 $ 717,489
Class I 26,706,929 - -
Class C 74,672 195,742 5,209
Class R 6,439 3,293 3,334
Class S 345,450,994 74,164,608 379,022,689
------------ ----------- ------------
Total $375,598,269 $76,134,513 $379,748,721
============ =========== ============
SHARES OUTSTANDING:
Class A 141,070 54,343 15,942
Class I 1,119,787 - -
Class C 3,146 6,029 116
Class R 271 101 74
Class S 14,486,397 2,273,868 8,413,915
------------ ----------- ------------
Total 15,750,671 2,334,341 8,430,047
============ =========== ============
28
================================================================================
FINANCIAL STATEMENTS
================================================================================
Statements of Assets and Liabilities (cont.)
- --------------------------------------------------------------------------------
TAMARACK TAMARACK ENTERPRISE TAMARACK
ENTERPRISE FUND SMALL CAP FUND VALUE FUND
----------------- --------------------- -----------
NET ASSET VALUES:
Class A (a) $ 23.81 $ 32.59 $ 45.01
======= ======= =======
Class I $ 23.85 $ - $ -
======= ======= =======
Class C (b) $ 23.74 $ 32.47 $ 44.85
======= ======= =======
Class R $ 23.78 $ 32.54 $ 44.95
======= ======= =======
Class S $ 23.85 $ 32.62 $ 45.05
======= ======= =======
MAXIMUM OFFERING PRICE PER SHARE:
Class A $ 25.26 $ 34.58 $ 47.76
======= ======= =======
Maximum Sales Charge -- Class A 5.75% 5.75% 5.75%
======= ======= =======
(a) For Class A shares, redemption price per share is reduced by 1.00% for
sales of shares within 12 months of purchase (only applicable on purchases
of $1 million or more).
(b) For Class C shares, redemption price per share is reduced by 1.00% for
sales of shares within 12 months of purchase.
SEE NOTES TO FINANCIAL STATEMENTS.
29
================================================================================
FINANCIAL STATEMENTS
================================================================================
Statements of Assets and Liabilities (cont.)
- --------------------------------------------------------------------------------
SEPTEMBER 30, 2004
TAMARACK TAMARACK SMALL CAP
MICROCAP VALUE FUND INTERNATIONAL FUND
--------------------- --------------------
ASSETS:
Investments, at market value (cost $178,980,345 and
$4,090,924, respectively) $221,905,072 $5,040,283
Interest and dividends receivable 127,741 10,557
Cash 275,976 -
Receivable for capital shares issued 635,358 -
Receivable for investments sold 3,927,844 -
Receivable from advisor - -
Reclaims receivable - 4,469
Prepaid expenses 12,839 13,959
------------ -----------
Total Assets 226,884,830 5,069,268
------------ -----------
LIABILITIES:
Payable for capital shares redeemed 167,623 -
Payable for investments purchased 5,815,445 -
Accrued expenses and other payables:
Investment advisory fees 157,167 42,464
Administration fees 17,807 404
Distribution fees 889 237
Other 71,873 27,335
------------ -----------
Total Liabilities 6,230,804 70,440
------------ -----------
Net Assets $220,654,026 $4,998,828
============ ===========
NET ASSETS CONSIST OF:
Capital $172,321,444 $4,765,256
Undistributed net investment income (loss) 236,652 -
Accumulated net realized gains (losses) from investment
and foreign currency transactions 5,171,203 (716,405)
Net unrealized appreciation on investments and
translation of assets and liabilities in foreign currency 42,924,727 949,977
------------ -----------
Net Assets $220,654,026 $4,998,828
============ ===========
NET ASSETS:
Class A $ 1,522,307 $ 207,448
Class C 166,676 3,088
Class R 94,319 3,094
Class S 218,870,724 4,785,198
------------ -----------
Total $220,654,026 $4,998,828
============ ===========
SHARES OUTSTANDING:
Class A 80,860 21,151
Class C 8,880 316
Class R 5,016 316
Class S 11,605,855 487,528
------------ -----------
Total 11,700,611 509,311
============ ===========
30
================================================================================
FINANCIAL STATEMENTS
================================================================================
Statements of Assets and Liabilities (cont.)
- --------------------------------------------------------------------------------
TAMARACK TAMARACK SMALL CAP
MICROCAP VALUE FUND INTERNATIONAL FUND
--------------------- --------------------
NET ASSET VALUES:
Class A (a) $ 18.83 $ 9.81
======= =======
Class C (b) $ 18.77 $ 9.78
======= =======
Class R $ 18.81 $ 9.80
======= =======
Class S $ 18.86 $ 9.82
======= =======
MAXIMUM OFFERING PRICE PER SHARE:
Class A $ 19.98 $ 10.41
======= =======
Maximum Sales Charge -- Class A 5.75% 5.75%
======= =======
(a) For Class A shares, redemption price per share is reduced by 1.00% for
sales of shares within 12 months of purchase (only applicable on purchases
of $1 million or more).
(b) For Class C shares, redemption price per share is reduced by 1.00% for
sales of shares within 12 months of purchase.
SEE NOTES TO FINANCIAL STATEMENTS.
31
================================================================================
FINANCIAL STATEMENTS
================================================================================
Statements of Operations
- --------------------------------------------------------------------------------
TAMARACK LARGE CAP
EQUITY FUND
FOR THE FOR THE
PERIOD ENDED YEAR ENDED
SEPTEMBER 30, 2004 (a) APRIL 30, 2004
------------------------ ---------------
INVESTMENT INCOME:
Interest income $ - $ -
Dividend income 753,788 341,363
Foreign tax withholding - -
----------- -----------
Total Investment Income 753,788 341,363
----------- -----------
EXPENSES:
Investment advisory fees 633,963 405,878
Administration fees 90,565 71,143
Distribution fees - Class A 22,509 42,594
Distribution fees - Class B (b) - 19,644
Distribution fees - Class C 13 1
Distribution fees - Class R 14 -
Accounting fees 811 27,944
Custodian fees 5,590 4,081
Legal and Audit fees 43,895 17,846
Registration and filing fees 41,457 23,447
Shareholder reports 23,615 2,785
Transfer agent fees 142,227 57,404
Trustees' fees 20,251 1,258
Other fees 22,163 12,209
----------- -----------
Total expenses before voluntary fee reductions 1,047,073 686,234
Expenses voluntarily reduced by:
Advisor (255,214) (5,873)
Distributor (11,254) (21,297)
----------- -----------
Net Expenses 780,605 659,064
----------- -----------
NET INVESTMENT INCOME (LOSS) (26,817) (317,701)
----------- -----------
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
Net realized gains (losses) from investment transactions 4,112,653 39,611,296
Net change in unrealized appreciation (depreciation) on
investments (7,338,820) (35,261,897)
Net change in translation of assets and liabilities in foreign
currencies - -
----------- -----------
Net realized/unrealized gains (losses) from investments (3,226,167) 4,349,399
----------- -----------
Change in net assets resulting from operations $(3,252,984) $ 4,031,698
=========== ===========
(a) For the period from May 1, 2004 to September 30, 2004.
(b) Class B shares were converted to Class A shares on March 24, 2004.
SEE NOTES TO FINANCIAL STATEMENTS.
32
================================================================================
FINANCIAL STATEMENTS
================================================================================
Statements of Operations (cont.)
- --------------------------------------------------------------------------------
TAMARACK MID CAP
EQUITY FUND
FOR THE FOR THE
PERIOD ENDED YEAR ENDED
SEPTEMBER 30, 2004 (a) APRIL 30, 2004
------------------------ ---------------
INVESTMENT INCOME:
Interest income $ - $ -
Dividend income 215,813 991,701
Foreign tax withholding - -
----------- -----------
Total Investment Income 215,813 991,701
----------- -----------
EXPENSES:
Investment advisory fees 381,557 1,105,965
Administration fees 54,507 234,616
Distribution fees - Class A 150,639 312,516
Distribution fees - Class B (b) - 61,859
Distribution fees - Class C 30 1
Distribution fees - Class R 15 -
Accounting fees 1,059 52,037
Custodian fees 336 11,562
Legal and Audit fees 37,915 108,375
Registration and filing fees 34,027 41,378
Shareholder reports 533 34,796
Transfer agent fees 56,667 179,443
Trustees' fees 11,332 9,925
Other fees 9,215 41,152
----------- -----------
Total expenses before voluntary fee reductions 737,832 2,193,625
Expenses voluntarily reduced by:
Advisor (32,080) (14,066)
Distributor (75,319) (156,257)
----------- -----------
Net Expenses 630,433 2,023,302
----------- -----------
NET INVESTMENT INCOME (LOSS) (414,620) (1,031,601)
----------- -----------
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
Net realized gains (losses) from investment transactions (3,250,469) 27,704,759
Net change in unrealized appreciation (depreciation) on
investments (2,881,868) 14,143,726
Net change in translation of assets and liabilities in foreign
currencies - -
----------- -----------
Net realized/unrealized gains (losses) from investments (6,132,337) 41,848,485
----------- -----------
Change in net assets resulting from operations $(6,546,957) $40,816,884
=========== ===========
(a) For the period from May 1, 2004 to September 30, 2004.
(b) Class B shares were converted to Class A shares on March 24, 2004.
SEE NOTES TO FINANCIAL STATEMENTS.
33
================================================================================
FINANCIAL STATEMENTS
================================================================================
Statements of Operations (cont.)
- --------------------------------------------------------------------------------
TAMARACK SMALL CAP
EQUITY FUND
FOR THE FOR THE
PERIOD ENDED YEAR ENDED
SEPTEMBER 30, 2004 (a) APRIL 30, 2004
------------------------ ---------------
INVESTMENT INCOME:
Interest income $ - $ -
Dividend income 33,871 71,078
Foreign tax withholding - -
---------- ----------
Total Investment Income 33,871 71,078
---------- ----------
EXPENSES:
Investment advisory fees 59,501 154,577
Administration fees 8,500 32,756
Distribution fees - Class A 16,201 27,348
Distribution fees - Class B (b) - 21,759
Distribution fees - Class C 667 1
Distribution fees - Class R 13 1
Accounting fees 1,427 32,164
Custodian fees 169 7,848
Legal and Audit fees 26,768 25,438
Registration and filing fees 35,144 30,526
Shareholder reports 692 6,665
Transfer agent fees 36,912 43,442
Trustees' fees 14,703 1,337
Other fees 2,107 7,640
---------- ----------
Total expenses before voluntary fee reductions 202,804 391,502
Expenses voluntarily reduced by:
Advisor (63,977) -
Distributor (8,100) (13,674)
---------- ----------
Net Expenses 130,727 377,828
---------- ----------
NET INVESTMENT INCOME (LOSS) (96,856) (306,750)
---------- ----------
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
Net realized gains (losses) from investment transactions 1,605,192 3,625,637
Net change in unrealized appreciation (depreciation) on
investments (718,396) 2,579,437
Net change in translation of assets and liabilities in foreign
currencies - -
---------- ----------
Net realized/unrealized gains from investments 886,796 6,205,074
---------- ----------
Change in net assets resulting from operations $ 789,940 $5,898,324
========== ==========
(a) For the period from May 1, 2004 to September 30, 2004.
(b) Class B shares were converted to Class A shares on March 24, 2004.
SEE NOTES TO FINANCIAL STATEMENTS.
34
================================================================================
FINANCIAL STATEMENTS
================================================================================
Statements of Operations (cont.)
- --------------------------------------------------------------------------------
TAMARACK ENTERPRISE
FUND
FOR THE FOR THE
PERIOD ENDED YEAR ENDED
SEPTEMBER 30, 2004 (a) JUNE 30, 2004
------------------------ --------------
INVESTMENT INCOME:
Interest income $ 6,305 $ 65,433
Dividend income 819,134 2,925,331
----------- -----------
Total Investment Income 825,439 2,990,764
----------- -----------
EXPENSES:
Investment advisory fees 811,149 2,875,456
Administration fees 85,937 302,802
Distribution fees - Class A 3,124 909
Distribution fees - Class C 116 21
Distribution fees - Class R 5 3
Accounting fees 762 90,790
Custodian fees 3,784 11,237
Legal and Audit fees 32,394 69,185
Registration and filing fees 522 55,127
Shareholder reports 21,955 56,645
Transfer agent fees 66,472 223,451
Trustees' fees 5,015 10,665
Other fees 15,786 10,994
----------- -----------
Total expenses before voluntary fee reductions 1,047,021 3,707,285
Expenses voluntarily reduced by:
Advisor (115,642) (434,618)
Distributor (1,562) (455)
----------- -----------
Net Expenses 929,817 3,272,212
----------- -----------
NET INVESTMENT INCOME (LOSS) (104,378) (281,448)
----------- -----------
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
Net realized gains (losses) from investment transactions 5,563,413 25,350,262
Net change in unrealized appreciation (depreciation) on
investments (7,233,137) 52,621,447
Net change in translation of assets and liabilities in foreign
currencies - -
----------- -----------
Net realized/unrealized gains (losses) from investments (1,669,724) 77,971,709
----------- -----------
Change in net assets resulting from operations $(1,774,102) $77,690,261
=========== ===========
(a) For the period from July 1, 2004 to September 30, 2004.
SEE NOTES TO FINANCIAL STATEMENTS.
35
================================================================================
FINANCIAL STATEMENTS
================================================================================
Statements of Operations (cont.)
- --------------------------------------------------------------------------------
TAMARACK ENTERPRISE
SMALL CAP FUND
FOR THE FOR THE
PERIOD ENDED YEAR ENDED
SEPTEMBER 30, 2004 (a) JUNE 30, 2004
------------------------ --------------
INVESTMENT INCOME:
Interest income $ - $ 166
Dividend income 135,728 556,028
----------- -----------
Total Investment Income 135,728 556,194
----------- -----------
EXPENSES:
Investment advisory fees 205,217 759,807
Administration fees 18,612 67,733
Distribution fees - Class A 1,532 375
Distribution fees - Class C 473 204
Distribution fees - Class R 4 3
Accounting fees 1,021 24,144
Custodian fees 1,102 6,523
Legal and Audit fees 17,884 30,314
Registration and filing fees 113 50,279
Shareholder reports 5,431 12,884
Transfer agent fees 25,302 77,539
Trustees' fees 5,015 11,824
Other fees 3,912 3,024
----------- -----------
Total expenses before voluntary fee reductions 285,618 1,044,653
Expenses voluntarily reduced by:
Advisor (41,647) (163,798)
Distributor (766) (187)
----------- -----------
Net Expenses 243,205 880,668
----------- -----------
NET INVESTMENT INCOME (LOSS) (107,477) (324,474)
----------- -----------
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
Net realized gains (losses) from investment transactions 1,087,663 6,893,399
Net change in unrealized appreciation (depreciation) on
investments (1,212,414) 13,406,860
Net change in translation of assets and liabilities in foreign
currencies - -
----------- -----------
Net realized/unrealized gains (losses) from investments (124,751) 20,300,259
----------- -----------
Change in net assets resulting from operations $ (232,228) $19,975,785
=========== ===========
(a) For the period from July 1, 2004 to September 30, 2004.
SEE NOTES TO FINANCIAL STATEMENTS.
36
================================================================================
FINANCIAL STATEMENTS
================================================================================
Statements of Operations (cont.)
- --------------------------------------------------------------------------------
TAMARACK VALUE FUND
FOR THE FOR THE
PERIOD ENDED YEAR ENDED
SEPTEMBER 30, 2004 (a) JUNE 30, 2004
------------------------ --------------
INVESTMENT INCOME:
Interest income $ - $ -
Dividend income 2,064,164 8,849,281
Foreign tax withholding - -
----------- ------------
Total Investment Income 2,064,164 8,849,281
----------- ------------
EXPENSES:
Investment advisory fees 806,015 3,330,228
Administration fees 94,824 391,788
Distribution fees - Class A 590 176
Distribution fees - Class C 12 8
Distribution fees - Class R 4 3
Accounting fees 541 121,406
Custodian fees 2,210 8,581
Legal and Audit fees 31,401 86,831
Registration and filing fees 464 49,554
Shareholder reports 26,746 77,016
Transfer agent fees 102,166 391,321
Trustees' fees 5,015 8,304
Other fees 19,388 13,542
----------- ------------
Total expenses before voluntary fee reductions 1,089,376 4,478,158
Expenses voluntarily reduced by:
Advisor (178,450) (721,921)
Distributor (295) (88)
----------- ------------
Net Expenses 910,631 3,756,749
----------- ------------
NET INVESTMENT INCOME (LOSS) 1,153,533 5,092,532
----------- ------------
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
Net realized gains (losses) from investment transactions 5,361,617 30,022,459
Net change in unrealized appreciation (depreciation) on
investments 549,117 31,457,240
Net change in translation of assets and liabilities in foreign
currencies - -
----------- ------------
Net realized/unrealized gains from investments 5,910,734 61,479,699
----------- ------------
Change in net assets resulting from operations $ 7,064,267 $ 66,572,231
=========== ============
(a) For the period from July 1, 2004 to September 30, 2004.
SEE NOTES TO FINANCIAL STATEMENTS.
37
================================================================================
FINANCIAL STATEMENTS
================================================================================
Statements of Operations (cont.)
- --------------------------------------------------------------------------------
TAMARACK MICROCAP
VALUE FUND
FOR THE FOR THE
PERIOD ENDED YEAR ENDED
SEPTEMBER 30, 2004 (a) JUNE 30, 2004
------------------------ --------------
INVESTMENT INCOME:
Interest income $ 3,512 $ 35,698
Dividend income 680,695 2,080,878
Foreign tax withholding - -
----------- ------------
Total Investment Income 684,207 2,116,576
----------- ------------
EXPENSES:
Investment advisory fees 493,982 1,423,278
Administration fees 54,886 158,139
Distribution fees - Class A 1,214 85
Distribution fees - Class C 139 7
Distribution fees - Class R 117 8
Accounting fees 4,740 55,612
Custodian fees 3,441 23,545
Legal and Audit fees 22,607 49,080
Registration and filing fees 567 54,716
Shareholder reports 16,733 26,088
Transfer agent fees 27,797 94,982
Trustees' fees 5,015 11,670
Other fees 9,031 6,443
----------- ------------
Total expenses before voluntary fee reductions 640,269 1,903,653
Expenses voluntarily reduced by:
Advisor (73,463) (272,203)
Distributor (607) (44)
----------- ------------
Net Expenses 566,199 1,631,406
----------- ------------
NET INVESTMENT INCOME (LOSS) 118,008 485,170
----------- ------------
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
Net realized gains (losses) from investment transactions 5,313,958 5,148,727
Net change in unrealized appreciation (depreciation) on
investments (9,569,340) 38,550,634
Net change in translation of assets and liabilities in foreign
currencies - -
----------- ------------
Net realized/unrealized gains (losses) from investments (4,255,382) 43,699,361
----------- ------------
Change in net assets resulting from operations $(4,137,374) $ 44,184,531
=========== ============
(a) For the period from July 1, 2004 to September 30, 2004.
SEE NOTES TO FINANCIAL STATEMENTS.
38
================================================================================
FINANCIAL STATEMENTS
================================================================================
Statements of Operations (cont.)
- --------------------------------------------------------------------------------
TAMARACK SMALL CAP
INTERNATIONAL FUND
FOR THE FOR THE
PERIOD ENDED YEAR ENDED
SEPTEMBER 30, 2004 (a) JUNE 30, 2004
------------------------ --------------
INVESTMENT INCOME:
Interest income $ - $ -
Dividend income 20,586 83,737
Foreign tax withholding (1,241) (11,650)
--------- -----------
Total Investment Income 19,345 72,087
--------- -----------
EXPENSES:
Investment advisory fees 18,202 64,300
Administration fees 1,255 4,434
Distribution fees - Class A 261 172
Distribution fees - Class C 8 6
Distribution fees - Class R 4 3
Accounting fees 8,919 6,968
Custodian fees 2,626 16,502
Legal and Audit fees 11,460 45,206
Registration and filing fees 456 59,740
Shareholder reports 252 7,053
Transfer agent fees 77 5,427
Trustees' fees 5,015 12,608
Other fees 615 6,069
--------- -----------
Total expenses before voluntary fee reductions 49,150 228,488
Expenses voluntarily reduced by:
Advisor (28,790) (157,286)
Distributor (131) (87)
--------- -----------
Net Expenses 20,229 71,115
--------- -----------
NET INVESTMENT INCOME (LOSS) (884) 972
--------- -----------
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
Net realized gains (losses) from investment transactions (49,152) 458,229
Net change in unrealized appreciation (depreciation) on
investments (313,011) 891,697
Net change in translation of assets and liabilities in foreign
currencies 282 217
--------- -----------
Net realized/unrealized gains (losses) from investments (361,881) 1,350,143
--------- -----------
Change in net assets resulting from operations $(362,765) $ 1,351,115
========= ===========
(a) For the period from July 1, 2004 to September 30, 2004.
SEE NOTES TO FINANCIAL STATEMENTS.
39
================================================================================
FINANCIAL STATEMENTS
================================================================================
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
TAMARACK LARGE CAP
EQUITY FUND
FOR THE FOR THE FOR THE
PERIOD ENDED YEAR ENDED YEAR ENDED
SEPTEMBER 30, 2004 (a) APRIL 30, 2004 APRIL 30, 2003
------------------------ ---------------- ---------------
FROM INVESTMENT ACTIVITIES:
Operations:
Net investment income (loss) $ (26,817) $ (317,701) $ 60,119
Net realized gains (losses) from
investment transactions 4,112,653 39,611,296 (27,566,941)
Net change in unrealized appreciation
(depreciation) on investments and
translation of assets and liabilities in
foreign currencies (7,338,820) (35,261,897) 16,236,068
------------ ------------ ------------
Change in net assets from operations (3,252,984) 4,031,698 (11,270,754)
------------ ------------ ------------
DISTRIBUTIONS TO CLASS A SHAREHOLDERS:
From net investment income - - (7,430)
From net realized gains from investment
transactions and futures contracts - - -
DISTRIBUTIONS TO CLASS B SHAREHOLDERS: (b)
From net investment income - - (84)
From net realized gains from investment
transactions and futures contracts - - -
DISTRIBUTIONS TO CLASS I SHAREHOLDERS:
From net investment income - - (102,196)
DISTRIBUTIONS TO CLASS S SHAREHOLDERS:
From net investment income - - -
From net realized gains from investment
transactions and futures contracts - - -
------------ ------------ ------------
Change in net assets from shareholder
distributions - - (109,710)
------------ ------------ ------------
CAPITAL TRANSACTIONS:
Proceeds from shares issued 3,053,402 15,996,157 11,064,718
Proceeds from shares exchanged from
Class B (b) - 1,987,261 -
Proceeds from shares issued in
connection with merger - 196,009,945 -
Dividends reinvested - - 42,295
Cost of shares redeemed (30,868,517) (31,125,993) (32,862,438)
Cost of shares exchanged to Class A - (1,987,261) -
------------ ------------ ------------
Change in net assets from capital
transactions (27,815,115) 180,880,109 (21,755,425)
------------ ------------ ------------
Net increase (decrease) in net assets (31,068,099) 184,911,807 (33,135,889)
NET ASSETS:
Beginning of year 230,062,025 45,150,218 78,286,107
------------ ------------ ------------
End of year $198,993,926 $230,062,025 $ 45,150,218
============ ============ ============
Undistributed net investment income $ - $ - $ -
============ ============ ============
40
================================================================================
FINANCIAL STATEMENTS
================================================================================
Statements of Changes in Net Assets (cont.)
- --------------------------------------------------------------------------------
TAMARACK LARGE CAP
EQUITY FUND (CONT.)
FOR THE FOR THE FOR THE
PERIOD ENDED YEAR ENDED YEAR ENDED
SEPTEMBER 30, 2004 (a) APRIL 30, 2004 APRIL 30, 2003
------------------------ ---------------- ---------------
SHARE TRANSACTIONS:
Issued 305,227 1,673,420 1,337,028
Issued in connection with exchange from
Class B (b) - 202,575 -
Issued in connection with merger - 18,955,270 -
Reinvested - - 4,865
Redeemed (3,106,072) (3,262,576) (3,849,492)
Cost of shares exchanged to Class A - (211,862) -
----------- ----------- -----------
Change in shares from capital transactions (2,800,845) 17,356,827 (2,507,599)
=========== =========== ===========
(a) For the period from May 1, 2004 to September 30, 2004.
(b) Class B shares were converted to Class A shares on March 24, 2004.
SEE NOTES TO FINANCIAL STATEMENTS.
41
================================================================================
FINANCIAL STATEMENTS
================================================================================
Statements of Changes in Net Assets (cont.)
- --------------------------------------------------------------------------------
TAMARACK MID CAP
EQUITY FUND
FOR THE FOR THE FOR THE
PERIOD ENDED YEAR ENDED YEAR ENDED
SEPTEMBER 30, 2004 (a) APRIL 30, 2004 APRIL 30, 2003
------------------------ ---------------- ---------------
FROM INVESTMENT ACTIVITIES:
Operations:
Net investment income (loss) $ (414,620) $ (1,031,601) $ (398,291)
Net realized gains (losses) from
investment transactions (3,250,469) 27,704,759 (11,194,364)
Net realized losses from futures contracts - - (964,999)
Net change in unrealized appreciation
(depreciation) on investments and
translation of assets and liabilities in
foreign currencies (2,881,868) 14,143,726 (22,484,146)
------------ ------------ ------------
Change in net assets from operations (6,546,957) 40,816,884 (35,041,800)
------------ ------------ ------------
DISTRIBUTIONS TO CLASS A SHAREHOLDERS:
From net investment income - - -
From net realized gains from investment
transactions and futures contracts - - (431,775)
DISTRIBUTIONS TO CLASS B SHAREHOLDERS: (b)
From net investment income - - -
From net realized gains from investment
transactions and futures contracts - - (91,773)
DISTRIBUTIONS TO CLASS I SHAREHOLDERS:
From net investment income - - -
DISTRIBUTIONS TO CLASS S SHAREHOLDERS:
From net investment income - - -
From net realized gains from investment
transactions and futures contracts - - (911,429)
------------ ------------ ------------
Change in net assets from shareholder
distributions - - (1,434,977)
------------ ------------ ------------
CAPITAL TRANSACTIONS:
Proceeds from shares issued 7,951,481 45,286,486 61,900,000
Proceeds from shares exchanged from
Class B (b) - 6,045,653 -
Dividends reinvested - - 1,432,835
Cost of shares redeemed (23,536,702) (96,598,044) (60,955,952)
Cost of shares exchanged to Class A - (6,045,653) -
------------ ------------ ------------
Change in net assets from capital
transactions (15,585,221) (51,311,558) 2,376,883
------------ ------------ ------------
Net increase (decrease) in net assets (22,132,178) (10,494,674) (34,099,894)
NET ASSETS:
Beginning of year 140,199,287 150,693,961 184,793,855
------------ ------------ ------------
End of year $118,067,109 $140,199,287 $150,693,961
============ ============ ============
Undistributed net investment income $ - $ - $ -
============ ============ ============
42
================================================================================
FINANCIAL STATEMENTS
================================================================================
Statements of Changes in Net Assets (cont.)
- --------------------------------------------------------------------------------
TAMARACK MID CAP
EQUITY FUND (CONT.)
FOR THE FOR THE FOR THE
PERIOD ENDED YEAR ENDED YEAR ENDED
SEPTEMBER 30, 2004 (a) APRIL 30, 2004 APRIL 30, 2003
------------------------ ---------------- ---------------
SHARE TRANSACTIONS:
Issued 664,395 4,024,702 6,443,976
Issued in connection with exchange from
Class B (b) - 506,336 -
Reinvested - - 153,085
Redeemed (1,961,518) (8,386,869) (6,461,774)
Cost of shares exchanged to Class A - (551,611) -
----------- ----------- -----------
Change in shares from capital transactions (1,297,123) (4,407,442) (135,287)
=========== =========== ===========
(a) For the period from May 1, 2004 to September 30, 2004.
(b) Class B shares were converted to Class A shares on March 24, 2004.
SEE NOTES TO FINANCIAL STATEMENTS.
43
================================================================================
FINANCIAL STATEMENTS
================================================================================
Statements of Changes in Net Assets (cont.)
- --------------------------------------------------------------------------------
TAMARACK SMALL CAP
EQUITY FUND
FOR THE FOR THE FOR THE
PERIOD ENDED YEAR ENDED YEAR ENDED
SEPTEMBER 30, 2004 (a) APRIL 30, 2004 APRIL 30, 2003
------------------------ ---------------- ---------------
FROM INVESTMENT ACTIVITIES:
Operations:
Net investment income (loss) $ (96,856) $ (306,750) $ (243,477)
Net realized gains (losses) from
investment transactions 1,605,192 3,625,637 (3,444,713)
Net realized losses from futures contracts - - -
Net change in unrealized appreciation
(depreciation) on investments and
translation of assets and liabilities in
foreign currencies (718,396) 2,579,437 (1,538,562)
------------ ------------ ------------
Change in net assets from operations 789,940 5,898,324 (5,226,752)
------------ ------------ ------------
CAPITAL TRANSACTIONS:
Proceeds from shares issued 1,651,380 10,720,002 11,572,346
Proceeds from shares exchanged from
Class B (b) - 2,202,168 -
Dividends reinvested - - -
Cost of shares redeemed (5,686,783) (18,175,934) (11,858,931)
Cost of shares exchanged to Class A - (2,202,168) -
------------ ------------ ------------
Change in net assets from capital
transactions (4,035,403) (7,455,932) (286,585)
------------ ------------ ------------
Net increase (decrease) in net assets (3,245,463) (1,557,608) (5,513,337)
NET ASSETS:
Beginning of year 21,593,416 23,151,024 28,664,361
------------ ------------ ------------
End of year $ 18,347,953 $ 21,593,416 $ 23,151,024
============ ============ ============
Undistributed net investment income $ - $ - $ -
============ ============ ============
SHARE TRANSACTIONS:
Issued 124,063 845,646 1,151,705
Issued in connection with exchange from
Class B (b) - 170,843 -
Reinvested - - -
Redeemed (424,896) (1,494,087) (1,195,656)
Cost of shares exchanged to Class A - (181,547) -
------------ ------------ ------------
Change in shares from capital transactions (300,833) (659,145) (43,951)
============ ============ ============
(a) For the period from May 1, 2004 to September 30, 2004.
(b) Class B shares were converted to Class A shares on March 24, 2004.
SEE NOTES TO FINANCIAL STATEMENTS.
44
================================================================================
FINANCIAL STATEMENTS
================================================================================
Statements of Changes in Net Assets (cont.)
- --------------------------------------------------------------------------------
TAMARACK ENTERPRISE
FUND
FOR THE FOR THE FOR THE
PERIOD ENDED YEAR ENDED YEAR ENDED
SEPTEMBER 30, 2004 (a) JUNE 30, 2004 JUNE 30, 2003
------------------------ ---------------- ----------------
FROM INVESTMENT ACTIVITIES:
Operations:
Net investment income (loss) $ (104,378) $ (281,448) $ 436,159
Net realized gains (losses) from
investment transactions 5,563,413 25,350,262 (16,021,294)
Net realized losses from futures contracts - - -
Net change in unrealized appreciation
(depreciation) on investments and
translation of assets and liabilities in
foreign currencies (7,233,137) 52,621,447 (13,778,746)
------------- ------------ -------------
Change in net assets from operations (1,774,102) 77,690,261 (29,363,881)
------------- ------------ -------------
DISTRIBUTIONS TO CLASS S SHAREHOLDERS:
From net investment income - (43,832) (389,957)
From net realized gains from investment
transactions and futures contracts - - (228,580)
------------- ------------ -------------
Change in net assets from shareholder
distributions - (43,832) (618,537)
------------- ------------ -------------
CAPITAL TRANSACTIONS:
Proceeds from shares issued 34,285,637 160,648,059 77,753,773
Dividends reinvested - 38,566 529,183
Cost of shares redeemed (24,741,238) (79,156,190) (209,998,143)
------------- ------------ -------------
Change in net assets from capital
transactions 9,544,399 81,530,435 (131,715,187)
------------- ------------ -------------
Net increase (decrease) in net assets 7,770,297 159,176,864 (161,697,605)
NET ASSETS:
Beginning of year 367,827,972 208,651,108 370,348,713
------------- ------------ -------------
End of year $ 375,598,269 $367,827,972 $ 208,651,108
============= ============ =============
Undistributed net investment income $ 357,106 $ - $ 43,829
============= ============ =============
SHARE TRANSACTIONS:
Issued 1,452,014 7,145,481 5,059,364
Reinvested - 1,685 30,390
Redeemed (1,088,325) (3,572,168) (13,870,209)
------------- ------------ -------------
Change in shares from capital transactions 363,689 3,574,998 (8,780,455)
============= ============ =============
(a) For the period from July 1, 2004 to September 30, 2004.
SEE NOTES TO FINANCIAL STATEMENTS.
45
================================================================================
FINANCIAL STATEMENTS
================================================================================
Statements of Changes in Net Assets (cont.)
- --------------------------------------------------------------------------------
TAMARACK ENTERPRISE
SMALL CAP FUND
FOR THE FOR THE FOR THE
PERIOD ENDED YEAR ENDED YEAR ENDED
SEPTEMBER 30, 2004 (a) JUNE 30, 2004 JUNE 30, 2003
------------------------ --------------- ----------------
FROM INVESTMENT ACTIVITIES:
Operations:
Net investment income (loss) $ (107,477) $ (324,474) $ (89,517)
Net realized gains (losses) from
investment transactions 1,087,663 6,893,399 (2,282,735)
Net realized losses from futures contracts - - -
Net change in unrealized appreciation
(depreciation) on investments and
translation of assets and liabilities in
foreign currencies (1,212,414) 13,406,860 (1,397,387)
------------ ------------ ------------
Change in net assets from operations (232,228) 19,975,785 (3,769,639)
------------ ------------ ------------
DISTRIBUTIONS TO CLASS S SHAREHOLDERS:
From net investment income - - -
From net realized gains from investment
transactions and futures contracts - - (1,109,290)
------------ ------------ ------------
Change in net assets from shareholder
distributions - - (1,109,290)
------------ ------------ ------------
CAPITAL TRANSACTIONS:
Proceeds from shares issued 1,533,057 15,468,065 9,288,735
Dividends reinvested - - 1,044,478
Cost of shares redeemed (2,289,873) (11,581,541) (13,612,663)
------------ ------------ ------------
Change in net assets from capital
transactions (756,816) 3,886,524 (3,279,450)
------------ ------------ ------------
Net increase (decrease) in net assets (989,044) 23,862,309 (8,158,379)
NET ASSETS:
Beginning of year 77,123,557 53,261,248 61,419,627
------------ ------------ ------------
End of year $ 76,134,513 $ 77,123,557 $ 53,261,248
============ ============ ============
Undistributed net investment income $ - $ - $ -
============ ============ ============
SHARE TRANSACTIONS:
Issued 48,280 504,598 424,863
Reinvested - - 43,960
Redeemed (72,570) (385,497) (626,353)
------------ ------------ ------------
Change in shares from capital transactions (24,290) 119,101 (157,530)
============ ============ ============
(a) For the period from July 1, 2004 to September 30, 2004.
SEE NOTES TO FINANCIAL STATEMENTS.
46
================================================================================
FINANCIAL STATEMENTS
================================================================================
Statements of Changes in Net Assets (cont.)
- --------------------------------------------------------------------------------
TAMARACK VALUE
FUND
FOR THE FOR THE FOR THE
PERIOD ENDED YEAR ENDED YEAR ENDED
SEPTEMBER 30, 2004 (a) JUNE 30, 2004 JUNE 30, 2003
------------------------ ---------------- ----------------
FROM INVESTMENT ACTIVITIES:
Operations:
Net investment income (loss) $ 1,153,533 $ 5,092,532 $ 4,517,437
Net realized gains (losses) from
investment transactions 5,361,617 30,022,459 (5,433,983)
Net realized losses from futures contracts - - -
Net change in unrealized appreciation
(depreciation) on investments and
translation of assets and liabilities in
foreign currencies 549,117 31,457,240 (45,672,797)
------------- ------------- -------------
Change in net assets from operations 7,064,267 66,572,231 (46,589,343)
------------- ------------- -------------
DISTRIBUTIONS TO CLASS S SHAREHOLDERS:
From net investment income - (3,800,757) (4,450,101)
From net realized gains from investment
transactions and futures contracts - (3,742,736) -
------------- ------------- -------------
Change in net assets from shareholder
distributions - (7,543,493) (4,450,101)
------------- ------------- -------------
CAPITAL TRANSACTIONS:
Proceeds from shares issued 3,264,668 37,127,202 83,748,273
Dividends reinvested - 7,260,313 4,270,867
Cost of shares redeemed (17,815,647) (89,961,354) (99,685,751)
------------- ------------- -------------
Change in net assets from capital
transactions (14,550,979) (45,573,839) (11,666,611)
------------- ------------- -------------
Net increase (decrease) in net assets (7,486,712) 13,454,899 (62,706,055)
NET ASSETS:
Beginning of year 387,235,433 373,780,534 436,486,589
------------- ------------- -------------
End of year $ 379,748,721 $ 387,235,433 $ 373,780,534
============= ============= =============
Undistributed net investment income $ 2,442,446 $ 1,288,913 $ (2,864)
============= ============= =============
SHARE TRANSACTIONS:
Issued 74,527 888,022 2,326,864
Reinvested - 170,742 119,366
Redeemed (406,181) (2,138,878) (2,789,637)
------------- ------------- -------------
Change in shares from capital transactions (331,654) (1,080,114) (343,407)
============= ============= =============
(a) For the period from July 1, 2004 to September 30, 2004.
SEE NOTES TO FINANCIAL STATEMENTS.
47
================================================================================
FINANCIAL STATEMENTS
================================================================================
Statements of Changes in Net Assets (cont.)
- --------------------------------------------------------------------------------
TAMARACK MICROCAP
VALUE FUND
FOR THE FOR THE FOR THE
PERIOD ENDED YEAR ENDED YEAR ENDED
SEPTEMBER 30, 2004 (a) JUNE 30, 2004 JUNE 30, 2003
------------------------ ---------------- ----------------
FROM INVESTMENT ACTIVITIES:
Operations:
Net investment income (loss) $ 118,008 $ 485,170 $ 297,659
Net realized gains (losses) from
investment transactions 5,313,958 5,148,727 (4,609,799)
Net realized losses from futures contracts - - -
Net change in unrealized appreciation
(depreciation) on investments and
translation of assets and liabilities in
foreign currencies (9,569,340) 38,550,634 (849,567)
------------- ------------- ------------
Change in net assets from operations (4,137,374) 44,184,531 (5,161,707)
------------- ------------- ------------
DISTRIBUTIONS TO CLASS S SHAREHOLDERS:
From net investment income - (397,468) (297,133)
From net realized gains from investment
transactions and futures contracts - (481,025) (1,908,203)
------------- ------------- ------------
Change in net assets from shareholder
distributions - (878,493) (2,205,336)
------------- ------------- ------------
CAPITAL TRANSACTIONS:
Proceeds from shares issued 5,519,818 136,437,976 41,992,905
Dividends reinvested - 822,848 2,091,769
Cost of shares redeemed (16,197,126) (37,300,490) (40,827,933)
------------- ------------- ------------
Change in net assets from capital
transactions (10,677,308) 99,960,334 3,256,741
------------- ------------- ------------
Net increase (decrease) in net assets (14,814,682) 143,266,372 (4,110,302)
NET ASSETS:
Beginning of year 235,468,708 92,202,336 96,312,638
------------- ------------- ------------
End of year $ 220,654,026 $ 235,468,708 $ 92,202,336
============= ============= ============
Undistributed net investment income $ 236,652 $ 118,644 $ 30,943
============= ============= ============
SHARE TRANSACTIONS:
Issued 302,030 7,615,318 3,453,385
Reinvested - 47,345 155,835
Redeemed (905,475) (2,137,437) (3,426,704)
------------- ------------- ------------
Change in shares from capital transactions (603,445) 5,525,226 182,516
============= ============= ============
(a) For the period from July 1, 2004 to September 30, 2004.
SEE NOTES TO FINANCIAL STATEMENTS.
48
FINANCIAL STATEMENTS
Statements of Changes in Net Assets (cont.)
- --------------------------------------------------------------------------------
TAMARACK SMALL CAP
INTERNATIONAL FUND
FOR THE FOR THE FOR THE
PERIOD ENDED YEAR ENDED YEAR ENDED
SEPTEMBER 30, 2004 (a) JUNE 30, 2004 JUNE 30, 2003
------------------------ --------------- --------------
FROM INVESTMENT ACTIVITIES:
Operations:
Net investment income (loss) $ (884) $ 972 $ (864)
Net realized gains (losses) from
investment transactions (49,152) 458,229 (308,355)
Net realized losses from futures contracts - - -
Net change in unrealized appreciation
(depreciation) on investments and
translation of assets and liabilities in
foreign currencies (312,729) 891,914 592,796
----------- ----------- -----------
Change in net assets from operations (362,765) 1,351,115 283,577
----------- ----------- -----------
DISTRIBUTIONS TO CLASS S SHAREHOLDERS:
From net investment income - - -
From net realized gains from investment
transactions and futures contracts - - -
From return of capital - - (192,818)
----------- ----------- -----------
Change in net assets from shareholder
distributions - - (192,818)
----------- ----------- -----------
CAPITAL TRANSACTIONS:
Proceeds from shares issued 41,988 1,364,923 1,370,049
Dividends reinvested - - 192,788
Cost of shares redeemed (1,527) (680,497) (1,360,738)
----------- ----------- -----------
Change in net assets from capital
transactions 40,461 684,426 202,099
----------- ----------- -----------
Net increase (decrease) in net assets (322,304) 2,035,541 292,858
NET ASSETS:
Beginning of year 5,321,132 3,285,591 2,992,733
----------- ----------- -----------
End of year $ 4,998,828 $ 5,321,132 $ 3,285,591
=========== =========== ===========
Undistributed net investment income $ - $ (6,137) $ -
=========== =========== ===========
SHARE TRANSACTIONS:
Issued 4,231 136,970 202,662
Reinvested - - 24,466
Redeemed (152) (64,943) (202,643)
----------- ----------- -----------
Change in shares from capital transactions 4,079 72,027 24,485
=========== =========== ===========
(a) For the period from July 1, 2004 to September 30, 2004.
SEE NOTES TO FINANCIAL STATEMENTS.
49
================================================================================
FINANCIAL HIGHLIGHTS
================================================================================
Tamarack Large Cap Equity Fund
- --------------------------------------------------------------------------------
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD INDICATED)
PERIOD ENDED YEAR ENDED APRIL 30,
SEPT. 30, ----------------------------------------------------------------------
2004 (e) 2004 2003 2002 2001 2000
------------- --------- --------- --------- --------- ---------
CLASS A
- -------
Net Asset Value, Beginning of $ 10.02 $ 8.33 $ 9.87 $ 12.02 $ 15.56 $ 13.81
Period
INVESTMENT ACTIVITIES:
Net Investment Income (Loss) (0.01) (0.07) - (0.02) (0.04) (0.02)
Net Realized and Unrealized (0.13) 1.76 (1.53) (2.13) (2.55) 2.03
Gains (Losses) on Investments --------- --------- --------- --------- --------- ---------
Total from Investment Activities (0.14) 1.69 (1.53) (2.15) (2.59) 2.01
DISTRIBUTIONS:
Net Investment Income - - (0.01) (a) - (0.01)
Return of Capital - - - (a) - -
Net Realized Gains - - - - (0.95) (0.25)
--------- --------- --------- --------- --------- ---------
Total Distributions - - (0.01) - (0.95) (0.26)
--------- --------- --------- --------- --------- ---------
Net Asset Value, End of Period $ 9.88 $ 10.02 $ 8.33 $ 9.87 $ 12.02 $ 15.56
Total Return* (1.40%)(b) 20.29% (15.53%) (17.87%) (17.24%) 14.63%
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period (000's) $ 10,614 $ 10,864 $ 7,686 $ 9,906 $ 14,126 $ 19,044
Ratio of Expenses to Average Net 1.10%(c) 1.54% 1.46% 1.34% 1.25% 1.25%
Assets
Ratio of Net Investment Income (0.27%)(c) (0.85%) (0.07%) (0.14%) (0.28%) (0.22%)
(Loss) to Average Net Assets
Ratio of Expenses to Average Net 1.63%(c) 1.79% 1.71% 1.59% 1.50% 1.50%
Assets**
Portfolio Turnover*** 16% 264% 90% 33% 31% 63%
CLASS I
- -------
Net Asset Value, Beginning of $ 10.11 $ 8.38 $ 9.92 $ 12.07 $ 15.57 $ 13.80
Period
INVESTMENT ACTIVITIES:
Net Investment Income (Loss) -(a) (0.07) 0.03 0.02 -(a) 0.01
Net Realized and Unrealized (0.14) 1.80 (1.55) (2.15) (2.55) 2.03
Gains (Losses) on Investments --------- --------- --------- --------- --------- ---------
Total from Investment Activities (0.14) 1.73 (1.52) (2.13) (2.55) 2.04
DISTRIBUTIONS:
Net Investment Income - - (0.02) (0.01) -(a) (0.02)
Return of Capital - - - (0.01) - -
Net Realized Gains - - - - (0.95) (0.25)
--------- --------- --------- --------- --------- ---------
Total Distributions - - (0.02) (0.02) (0.95) (0.27)
--------- --------- --------- --------- --------- ---------
Net Asset Value, End of Period $ 9.97 $ 10.11 $ 8.38 $ 9.92 $ 12.07 $ 15.57
Total Return* (1.38%)(b) 20.64% (15.34%) (17.71%) (16.96%) 14.88%
Net Assets, End of Period (000's) $ 19,556 $ 28,454 $ 35,379 $ 64,516 $ 149,839 $ 194,157
Ratio of Expenses to Average Net 0.85%(c) 1.29% 1.21% 1.09% 1.00% 1.00%
Assets
Ratio of Net Investment Income (0.03%)(c) (0.60%) 0.20% 0.11% (0.03%) 0.09%
(Loss) to Average Net Assets
Ratio of Expenses to Average Net 1.11%(c) 1.29% (d) (d) (d) (d)
Assets**
Portfolio Turnover*** 16% 264% 90% 33% 31% 63%
SEE NOTES TO FINANCIAL STATEMENTS.
50
================================================================================
FINANCIAL HIGHLIGHTS
================================================================================
PERIOD ENDED
SEPT. 30, APRIL 30,
2004 (e) 2004 (f)
------------- -------------
CLASS C
- -------
Net Asset Value, $ 10.02 $ 10.28
Beginning of Period
INVESTMENT ACTIVITIES:
Net Investment Income (0.04) -
(Loss)
Net Realized and (0.13) (0.26)
Unrealized Gains ------- -------
(Losses) on
Investments
Total from Investment (0.17) (0.26)
Activities
DISTRIBUTIONS:
Net Investment Income - -
Return of Capital - -
Net Realized Gains - -
------- -------
Total Distributions - -
------- -------
Net Asset Value, End of $ 9.85 $ 10.02
Period
Total Return* (1.70%)(b) (2.53%)(b)
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of $ 3 $ 3
Period (000's)
Ratio of Expenses to 1.81%(c) 1.88%(c)
Average Net Assets
Ratio of Net Investment (0.98%)(c) (1.15%)(c)
Income (Loss) to
Average Net Assets
Ratio of Expenses to 2.13%(c) (d)
Average Net
Assets**
Portfolio Turnover*** 16% 264%
CLASS R
- -------
Net Asset Value, $ 10.02 $ 10.28
Beginning of Period
INVESTMENT ACTIVITIES:
Net Investment Income - -
(Loss)
Net Realized and (0.15) (0.26)
Unrealized Gains ------- -------
(Losses) on
Investments
Total from Investment (0.15) (0.26)
Activities
DISTRIBUTIONS:
Net Investment Income - -
Return of Capital - -
Net Realized Gains - -
------- -------
Total Distributions - -
------- -------
Net Asset Value, End of $ 9.87 $ 10.02
Period
Total Return* (1.50%)(b) (2.53%)(b)
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of $ 65 $ 3
Period (000's)
Ratio of Expenses to 1.34%(c) 1.32%(c)
Average Net Assets
Ratio of Net Investment 0.12%(c) (0.63%)(c)
Income (Loss) to
Average Net Assets
Ratio of Expenses to 2.00%(c) (d)
Average Net
Assets**
Portfolio Turnover*** 16% 264%
PERIOD ENDED
SEPT. 30, APRIL 30,
2004 (e) 2004 (f)
------------- -------------
CLASS S
- -------
Net Asset Value, $ 10.11 $ 10.37
Beginning of Period
INVESTMENT ACTIVITIES:
Net Investment Income - -
(Loss)
Net Realized and (0.14) (0.26)
Unrealized Gains ------- -------
(Losses) on
Investments
Total from Investment (0.14) (0.26)
Activities
DISTRIBUTIONS:
Net Investment Income - -
Return of Capital - -
Net Realized Gains - -
------- -------
Total Distributions - -
------- -------
Net Asset Value, End of $ 9.97 $ 10.11
Period
Total Return* (1.38%)(b) (2.51%)(b)
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of $168,756 $190,737
Period (000's)
Ratio of Expenses to 0.85%(c) 0.85%(c)
Average Net Assets
Ratio of Net Investment (0.02%)(c) (0.27%)(c)
Income (Loss) to
Average Net Assets
Ratio of Expenses to 1.13%(c) (d)
Average Net
Assets**
Portfolio Turnover*** 16% 264%
* Excludes sales charge.
** During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratio would have been as indicated.
*** Portfolio turnover is calculated on the basis of the fund as a whole
without distinguishing between the classes of shares issued.
(a) Less than $0.01 per share.
(b) Not annualized.
(c) Annualized.
(d) There were no waivers or reimbursements during the period.
(e) For the period from May 1, 2004 to September 30, 2004.
(f) For the period from April 19, 2004 (commencement of operations) to April
30, 2004.
SEE NOTES TO FINANCIAL STATEMENTS.
51
================================================================================
FINANCIAL HIGHLIGHTS
================================================================================
Tamarack Mid Cap Equity Fund
- --------------------------------------------------------------------------------
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD INDICATED)
PERIOD ENDED YEAR ENDED APRIL 30,
SEPT. 30, -----------------------------------------------------------------
2004 (e) 2004 2003 2002 2001 2000
------------ --------- --------- --------- --------- ---------
CLASS A
- -------
Net Asset Value, Beginning of $ 12.17 $ 9.46 $ 11.73 $ 11.99 $ 14.02 $ 15.33
Period
INVESTMENT ACTIVITIES:
Net Investment Income (Loss) (0.04) (0.08) (0.03) (0.01) 0.01 (0.02)
Net Realized and Unrealized (0.56) 2.79 (2.15) 0.67 0.98 2.69
Gains (Losses) on Investments -------- --------- --------- --------- --------- ---------
Total from Investment Activities (0.60) 2.71 (2.18) 0.66 0.99 2.67
DISTRIBUTIONS:
Net Investment Income - - - (0.01) (0.01) -
Net Realized Gains - - (0.09) (0.91) (3.01) (3.98)
-------- --------- --------- --------- --------- ---------
Total Distributions - - (0.09) (0.92) (3.02) (3.98)
-------- --------- --------- --------- --------- ---------
Net Asset Value, End of Period $ 11.57 $ 12.17 $ 9.46 $ 11.73 $ 11.99 $ 14.02
Total Return* (4.93%)(b) 28.65% (18.58%) 5.99% 5.92% 21.15%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000's) $ 69,979 $ 74,150 $ 48,806 $ 55,143 $ 28,312 $ 30,374
Ratio of Expenses to Average Net 1.27%(c) 1.38% 1.40% 1.37% 1.31% 1.31%
Assets
Ratio of Net Investment Income (0.88%)(c) (0.78%) (0.37%) (0.22%) 0.09% (0.17%)
(Loss) to Average Net Assets
Ratio of Expenses to Average Net 1.58%(c) 1.64% 1.65% 1.62% 1.56% 1.56%
Assets**
Portfolio Turnover*** 15% 93% 28% 19% 66% 61%
CLASS I
- -------
Net Asset Value, Beginning of $ 12.41 $ 9.62 $ 11.91 $ 12.13 $ 14.14 $ 15.37
Period
INVESTMENT ACTIVITIES:
Net Investment Income (Loss) (0.04) (0.08) (0.01) 0.01 0.04 0.01
Net Realized and Unrealized (0.56) 2.87 (2.19) 0.69 0.99 2.74
Gains (Losses) on Investments -------- --------- --------- --------- --------- ---------
Total from Investment Activities (0.60) 2.79 (2.20) 0.70 1.03 2.75
DISTRIBUTIONS:
Net Investment Income - - - (0.01) (0.03) (a)
Net Realized Gains - - (0.09) (0.91) (3.01) (3.98)
-------- --------- --------- --------- --------- ---------
Total Distributions - - (0.09) (0.92) (3.04) (3.98)
-------- --------- --------- --------- --------- ---------
Net Asset Value, End of Period $ 11.81 $ 12.41 $ 9.62 $ 11.91 $ 12.13 $ 14.14
Total Return* (4.83%)(b) 29.00% (18.46%) 6.34% 6.17% 21.67%
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period (000's) $ 47,778 $ 66,039 $ 94,472 $ 115,032 $ 120,842 $ 84,905
Ratio of Expenses to Average Net 1.02%(c) 1.15% 1.15% 1.12% 1.06% 1.06%
Assets
Ratio of Net Investment Income (0.62%)(c) (0.50%) (0.12%) 0.10% 0.35% 0.10%
(Loss) to Average Net Assets
Ratio of Expenses to Average Net 1.07%(c) 1.16% (d) (d) (d) (d)
Assets**
Portfolio Turnover*** 15% 93% 28% 19% 66% 61%
SEE NOTES TO FINANCIAL STATEMENTS.
52
================================================================================
FINANCIAL HIGHLIGHTS
================================================================================
PERIOD ENDED
SEPT. 30, APRIL 30,
2004 (e) 2004 (f)
------------------ ------------------
CLASS C
- -------
Net Asset Value, $12.16 $12.51
Beginning of Period
INVESTMENT ACTIVITIES:
Net Investment Income (0.05) -
(Loss)
Net Realized and (0.58) (0.35)
Unrealized Gains ------ ------
(Losses) on
Investments
Total from Investment (0.63) (0.35)
Activities
DISTRIBUTIONS:
Net Investment Income - -
Net Realized Gains - -
------ ------
Total Distributions - -
------ ------
Net Asset Value, End of $11.53 $12.16
Period
Total Return* (5.18%)(b) (2.80%)(b)
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of $ 13 $ 3
Period (000's)
Ratio of Expenses to 2.02%(c) 1.28%(c)
Average Net Assets
Ratio of Net Investment (1.65%)(c) (1.01%)(c)
Income (Loss) to
Average Net Assets
Ratio of Expenses to 2.12%(c) (d)
Average Net
Assets**
Portfolio Turnover*** 15% 93%
CLASS R
- -------
Net Asset Value, $12.17 $12.51
Beginning of Period
INVESTMENT ACTIVITIES:
Net Investment Income (0.01) -
(Loss)
Net Realized and (0.61) (0.34)
Unrealized Gains ------ ------
(Losses) on
Investments
Total from Investment (0.62) (0.34)
Activities
DISTRIBUTIONS:
Net Investment Income - -
Net Realized Gains - -
------ ------
Total Distributions - -
------ ------
Net Asset Value, End of $11.55 $12.17
Period
Total Return* (5.09%)(b) (2.72%)(b)
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of $ 72 $ 3
Period (000's)
Ratio of Expenses to 1.52%(c) 0.79%(c)
Average Net Assets
Ratio of Net Investment (1.20%)(c) (0.56%)(c)
Income (Loss) to
Average Net Assets
Ratio of Expenses to 1.78%(c) (d)
Average Net
Assets**
Portfolio Turnover*** 15% 93%
PERIOD ENDED
SEPT. 30, APRIL 30,
2004 (e) 2004 (f)
------------------ ------------------
CLASS S
- -------
Net Asset Value, $ 12.41 $ 12.76
Beginning of Period
INVESTMENT ACTIVITIES:
Net Investment Income (0.01) -
(Loss)
Net Realized and (0.59) (0.35)
Unrealized Gains ------- -------
(Losses) on
Investments
Total from Investment (0.60) (0.35)
Activities
DISTRIBUTIONS:
Net Investment Income - -
Net Realized Gains - -
------- -------
Total Distributions - -
------- -------
Net Asset Value, End of $ 11.81 12.41
Period
Total Return* (4.83%)(b) (2.74%)(b)
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of $ 225 $ 4
Period (000's)
Ratio of Expenses to 1.03%(c) 0.25%(c)
Average Net Assets
Ratio of Net Investment (0.71%)(c) (0.06%)(c)
Income (Loss) to
Average Net Assets
Ratio of Expenses to 1.15%(c) (d)
Average Net
Assets**
Portfolio Turnover*** 15% 93%
* Excludes sales charge.
** During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratio would have been as indicated.
*** Portfolio turnover is calculated on the basis of the fund as a whole
without distinguishing between the classes of shares issued.
(a) Less than $0.01 per share.
(b) Not annualized.
(c) Annualized.
(d) There were no waivers or reimbursements during the period.
(e) For the period from May 1, 2004 to September 30, 2004.
(f) For the period from April 19, 2004 (commencement of operations) to April
30, 2004.
SEE NOTES TO FINANCIAL STATEMENTS.
53
================================================================================
FINANCIAL HIGHLIGHTS
================================================================================
Tamarack Small Cap Equity Fund
- --------------------------------------------------------------------------------
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD INDICATED)
PERIOD ENDED YEAR ENDED APRIL 30,
SEPT. 30, ------------------------------------------------------------------
2004 (d) 2004 2003 2002 2001 2000
---------------- ---------- ---------- ---------- ---------- ----------
CLASS A
- -------
Net Asset Value, Beginning of $ 13.19 $ 10.11 $ 12.32 $ 11.56 $ 12.50 $ 12.69
Period
INVESTMENT ACTIVITIES:
Net Investment Loss (0.07) (0.15) (0.12) (0.11) (0.11) (0.09)
Net Realized and Unrealized 0.66 3.23 (2.09) 1.04 0.08 2.31
Gains (Losses) on Investments ------- ------- -------- ------- ------- -------
Total from Investment Activities 0.59 3.08 (2.21) 0.93 (0.03) 2.22
DISTRIBUTIONS:
Net Investment Income - - - - - -
Net Realized Gains - - - (0.17) (0.91) ( 2.41)
------- ------- -------- ------- ------- -------
Total Distributions - - - (0.17) (0.91) (2.41)
------- ------- -------- ------- ------- -------
Net Asset Value, End of Period $ 13.78 $ 13.19 $ 10.11 $ 12.32 $ 11.56 $ 12.50
Total Return* 4.47%(a) 30.46% (17.94%) 8.17% (0.43%) 19.97%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000's) $ 8,140 $7,488 $4,359 $6,069 $5,870 $6,881
Ratio of Expenses to Average Net 1.68%(b) 1.81% 1.70% 1.61% 1.49% 1.46%
Assets
Ratio of Net Investment Loss to (1.28%)(b) (1.52%) (1.12%) (0.99%) (0.85%) (0.80%)
Average Net Assets
Ratio of Expenses to Average Net 2.76%(b) 2.06% 1.95% 1.86% 1.74% 1.71%
Assets**
Portfolio Turnover*** 11% 40% 120% 31% 71% 258%
CLASS I
- -------
Net Asset Value, Beginning of $ 13.40 $ 10.25 $ 12.45 $ 11.66 $ 12.57 $ 12.72
Period
INVESTMENT ACTIVITIES:
Net Investment Loss (0.08) (0.17) (0.09) (0.07) (0.06) (0.07)
Net Realized and Unrealized 0.69 3.32 (2.11) 1.03 0.06 2.33
Gains (Losses) on Investments ------- ------- -------- ------- ------- -------
Total from Investment Activities 0.61 3.15 (2.20) 0.96 - 2.26
DISTRIBUTIONS:
Net Investment Income - - - - - -
Net Realized Gains - - - (0.17) (0.91) (2.41)
------- ------- -------- ------- ------- -------
Total Distributions - - - (0.17) (0.91) (2.41)
------- ------- -------- ------- ------- -------
Net Asset Value, End of Period $ 14.01 $ 13.40 $ 10.25 $ 12.45 $ 11.66 $ 12.57
Total Return* 4.55%(a) 30.73% (17.67%) 8.36% (0.17%) 20.24%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000's) $9,952 $14,094 $16,621 $19,113 $22,877 $20,645
Ratio of Expenses to Average Net 1.43%(b) 1.55% 1.45% 1.36% 1.24% 1.21%
Assets
Ratio of Net Investment Loss to (1.04%)(b) (1.23%) (0.87%) (0.72%) (0.60%) (0.51%)
Average Net Assets
Ratio of Expenses to Average Net 2.14%(b) (c) (c) (c) (c) (c)
Assets**
Portfolio Turnover*** 11% 40% 120% 31% 71% 258%
SEE NOTES TO FINANCIAL STATEMENTS.
54
================================================================================
FINANCIAL HIGHLIGHTS
================================================================================
PERIOD ENDED
SEPT. 30, APRIL 30,
2004 (d) 2004 (e)
-------------- ---------------
CLASS C
- -------
Net Asset Value, $ 13.19 $ 13.63
Beginning of Period
INVESTMENT ACTIVITIES:
Net Investment Loss (0.09) (0.02)
Net Realized and 0.64 (0.42)
Unrealized Gains ------- -------
(Losses) on
Investments
Total from Investment 0.55 (0.44)
Activities
DISTRIBUTIONS:
Net Investment Income - -
Net Realized Gains - -
------- -------
Total Distributions - -
------- -------
Net Asset Value, End of $ 13.74 $ 13.19
Period
Total Return* 4.17%(a) (3.23%)(a)
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of $ 214 $ 3
Period (000's)
Ratio of Expenses to 2.43%(b) 2.49%(b)
Average Net Assets
Ratio of Net Investment (2.01%)(b) (5.27%)(b)
Loss to Average Net
Assets
Ratio of Expenses to 3.40%(b) (c)
Average Net
Assets**
Portfolio Turnover*** 11% 40%
CLASS R
- -------
Net Asset Value, $ 13.19 $ 13.63
Beginning of Period
INVESTMENT ACTIVITIES:
Net Investment Loss (0.02) (0.02)
Net Realized and 0.59 (0.42)
Unrealized Gains ------- -------
(Losses) on
Investments
Total from Investment 0.57 (0.44)
Activities
DISTRIBUTIONS:
Net Investment Income - -
Net Realized Gains - -
------- -------
Total Distributions - -
------- -------
Net Asset Value, End of $ 13.76 $ 13.19
Period
Total Return* 4.32%(a) (3.23%)(a)
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of $ 22 $ 5
Period (000's)
Ratio of Expenses to 1.93%(b) 1.94%(b)
Average Net Assets
Ratio of Net Investment (1.48%)(b) (5.14%)(b)
Loss to Average Net
Assets
Ratio of Expenses to 3.22%(b) (c)
Average Net
Assets**
Portfolio Turnover*** 11% 40%
PERIOD ENDED
SEPT. 30, APRIL 30,
2004 (d) 2004 (e)
-------------- ---------------
CLASS S
- -------
Net Asset Value, $ 13.40 $ 13.84
Beginning of Period
INVESTMENT ACTIVITIES:
Net Investment Loss (0.02) (0.02)
Net Realized and 0.63 (0.42)
Unrealized Gains ------- -------
(Losses) on
Investments
Total from Investment 0.61 (0.44)
Activities
DISTRIBUTIONS:
Net Investment Income - -
Net Realized Gains - -
------- -------
Total Distributions - -
------- -------
Net Asset Value, End of $ 14.01 $ 13.40
Period
Total Return* 4.55%(a) (3.18%)(a)
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of $ 21 $ 3
Period (000's)
Ratio of Expenses to 1.42%(b) 1.47%(b)
Average Net Assets
Ratio of Net Investment (0.94%)(b) (4.34%)(b)
Loss to Average Net
Assets
Ratio of Expenses to 3.19%(b) (c)
Average Net
Assets**
Portfolio Turnover*** 11% 40%
* Excludes sales charge.
** During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratio would have been as indicated.
*** Portfolio turnover is calculated on the basis of the fund as a whole
without distinguishing between the classes of shares issued.
(a) Not annualized.
(b) Annualized.
(c) There were no waivers or reimbursements during the period.
(d) For the period from May 1, 2004 to September 30, 2004.
(e) For the period from April 19, 2004 (commencement of operations) to April
30, 2004.
SEE NOTES TO FINANCIAL STATEMENTS.
55
================================================================================
FINANCIAL HIGHLIGHTS
================================================================================
Tamarack Enterprise Fund
- --------------------------------------------------------------------------------
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD INDICATED)
PERIOD ENDED YEAR ENDED JUNE 30,
SEPT. 30, -----------------------------------------------------------------------
2004 (d) 2004 (g) 2003 2002 2001 2000
------------------ ------------ ------------- -------------- -------------- --------------
CLASS S
- -------
Net Asset Value, Beginning of $ 23.91 $ 17.66 $ 17.98 $ 15.24 $ 13.82 $ 14.72
Period
INVESTMENT ACTIVITIES:
Net Investment Income (Loss) (0.01) (0.02) 0.04 0.02 0.03 0.03
Net Realized and Unrealized (0.05) 6.27 (0.31) 3.08 2.46 0.18
Gains (Losses) on Investments -------- -------- -------- -------- -------- --------
Total from Investment Activities (0.06) 6.25 (0.27) 3.10 2.49 0.21
DISTRIBUTIONS:
Net Investment Income - - (0.03) (0.05) (0.02) (0.04)
Net Realized Gains - - (0.02) (0.31) (1.05) (1.07)
-------- -------- -------- -------- -------- --------
Total Distributions - - (0.05) (0.36) (1.07) (1.11)
-------- -------- -------- -------- -------- --------
Net Asset Value, End of Period $ 23.85 $ 23.91 $ 17.66 $ 17.98 $ 15.24 $ 13.82
Total Return* (0.21%)(a) 35.35% (1.48%) 20.82% 20.08% 2.84%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000's) $345,451 $365,930 $208,651 $370,351 $136,726 $111,394
Ratio of Expenses to Average Net 1.08%(b) 1.08% 1.08% 1.08% 1.15% 1.14%
Assets
Ratio of Net Investment Income (0.12%)(b) (0.09%) 0.21% 0.04% 0.25% 0.15%
(Loss) to Average Net Assets
Ratio of Expenses to Average Net 1.21%(b) 1.22% 1.14% (c) (c) (c)
Assets**
Portfolio Turnover*** 7% 28% 13% 93% 55% 32%
SEE NOTES TO FINANCIAL STATEMENTS.
56
================================================================================
FINANCIAL HIGHLIGHTS
================================================================================
PERIOD ENDED
SEPT. 30, JUNE 30,
2004 (d) 2004 (e)
------------------ ------------------
CLASS A
- -------
Net Asset Value, Beginning $ 23.89 $ 24.01
of Period
INVESTMENT ACTIVITIES:
Net Investment Income (0.02) -
(Loss)
Net Realized and (0.06) (0.12)
Unrealized Gains ------- -------
(Losses) on
Investments
Total from Investment (0.08) (0.12)
Activities
DISTRIBUTIONS:
Net Investment Income - -
Net Realized Gains - -
------- -------
Total Distributions - -
------- -------
Net Asset Value, End of $ 23.81 $ 23.89
Period
Total Return* (0.33%)(a) (0.50%)(a)
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period $ 3,359 $ 1,872
(000's)
Ratio of Expenses to 1.33%(b) 1.33%(b)
Average Net Assets
Ratio of Net Investment (0.35%)(b) (0.07%)(b)
Income (Loss) to
Average Net Assets
Ratio of Expenses to 1.73%(b) 1.72%(b)
Average Net Assets**
Portfolio Turnover*** 7% 28%
PERIOD ENDED
SEPT. 30,
2004 (f)
-------------
CLASS I
- -------
Net Asset Value, Beginning of $ 23.85
Period
INVESTMENT ACTIVITIES:
Net Investment Income (Loss) -
Net Realized and Unrealized -
Gains (Losses) on Investments -------
Total from Investment Activities -
DISTRIBUTIONS:
Net Investment Income -
Net Realized Gains -
-------
Total Distributions -
-------
Net Asset Value, End of Period $ 23.85
Total Return* 0.00%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000's) $26,707
Ratio of Expenses to Average 0.00%
Net Assets
Ratio of Net Investment Income 0.00%
(Loss) to Average Net Assets
Ratio of Expenses to Average 0.00%
Net Assets**
Portfolio Turnover*** 7%
PERIOD ENDED
SEPT. 30, JUNE 30,
2004 (d) 2004 (e)
----------- -----------
CLASS C
- -------
Net Asset Value, Beginning $ 23.85 $ 24.01
of Period
INVESTMENT ACTIVITIES:
Net Investment Income (0.04) (0.01)
(Loss)
Net Realized and (0.07) (0.15)
Unrealized Gains ------- -------
(Losses) on
Investments
Total from Investment (0.11) (0.16)
Activities
PERIOD ENDED
SEPT. 30, JUNE 30,
2004 (d) 2004 (e)
------------------ ------------------
CLASS C (CONT.)
- ---------------
DISTRIBUTIONS:
Net Investment Income - -
Net Realized Gains - -
------- -------
Total Distributions - -
------- -------
Net Asset Value, End of $ 23.74 $ 23.85
Period
Total Return* (0.46%)(a) (0.67%)(a)
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period $ 75 $ 23
(000's)
Ratio of Expenses to 2.08%(b) 2.07%(b)
Average Net Assets
Ratio of Net Investment (1.09%)(b) (0.67%)(b)
Income (Loss) to
Average Net Assets
Ratio of Expenses to 2.25%(b) 2.22%(b)
Average Net Assets**
Portfolio Turnover*** 7% 28%
CLASS R
- -------
Net Asset Value, Beginning $ 23.87 $ 24.01
of Period
INVESTMENT ACTIVITIES:
Net Investment Income (0.02) (0.02)
(Loss)
Net Realized and (0.07) (0.12)
Unrealized Gains ------- -------
(Losses) on
Investments
Total from Investment (0.09) (0.14)
Activities
DISTRIBUTIONS:
Net Investment Income - -
Net Realized Gains - -
------- -------
Total Distributions - -
------- -------
Net Asset Value, End of $ 23.78 $ 23.87
Period
Total Return* (0.38%)(a) (0.58%)(a)
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period $ 6 $ 3
(000's)
Ratio of Expenses to 1.57%(b) 1.54%(b)
Average Net Assets
Ratio of Net Investment (0.61%)(b) (0.38%)(b)
Income (Loss) to
Average Net Assets
Ratio of Expenses to 1.77%(b) 1.61%(b)
Average Net Assets**
Portfolio Turnover*** 7% 28%
* Excludes sales charge.
** During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratio would have been as indicated.
*** Portfolio turnover is calculated on the basis of the fund as a whole
without distinguishing between the classes of shares issued.
(a) Not annualized.
(b) Annualized.
(c) There were no waivers or reimbursements during the period.
(d) For the period from July 1, 2004 to September 30, 2004.
(e) For the period from April 19, 2004 (commencement of operations) to June
30, 2004.
(f) For the period from September 30, 2004 (commencement of operations) to
September 30, 2004.
(g) The pre-existing shares were designated Class S shares as of April 19,
2004.
SEE NOTES TO FINANCIAL STATEMENTS.
57
================================================================================
FINANCIAL HIGHLIGHTS
================================================================================
Tamarack Enterprise Small Cap Fund
- --------------------------------------------------------------------------------
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD INDICATED)
PERIOD ENDED YEAR ENDED JUNE 30,
SEPT. 30, --------------------------------------------------------------
2004 (d) 2004 (f) 2003 2002 2001 2000
---------------- ---------- -------- -------- -------- --------
CLASS S
- -------
Net Asset Value, Beginning of $ 32.70 $ 23.78 $ 25.62 $ 26.19 $ 25.18 $ 24.48
Period
INVESTMENT ACTIVITIES:
Net Investment Income (Loss) (0.05) (0.14) (0.04) (0.03) 0.04 0.02
Net Realized and Unrealized (0.03) 9.06 (1.29) 0.73 3.63 1.30
Gains (Losses) on Investments ------- ------- ------- ------- ------- -------
Total from Investment Activities (0.08) 8.92 (1.33) 0.70 3.67 1.32
DISTRIBUTIONS:
Net Investment Income - - - (0.01) (0.03) (0.02)
Net Realized Gains - - (0.51) (1.26) (2.63) (0.60)
------- ------- ------- ------- ------- -------
Total Distributions - - (0.51) (1.27) (2.66) (0.62)
------- ------- ------- ------- ------- -------
Net Asset Value, End of Period $ 32.62 $ 32.70 $ 23.78 $ 25.62 $ 26.19 $ 25.18
Total Return* (0.24%)(a) 37.57% (5.22%) 2.91% 15.54% 5.63%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000's) $74,165 $76,036 $53,261 $61,420 $60,322 $59,758
Ratio of Expenses to Average Net 1.30%(b) 1.30% 1.30% 1.30% 1.30% 1.27%
Assets
Ratio of Net Investment Income (0.57%)(b) (0.48%) (0.18%) (0.14%) 0.12% 0.08%
(Loss) to Average Net Assets
Ratio of Expenses to Average Net 1.53%(b) 1.54% 1.38% (c) (c) (c)
Assets**
Portfolio Turnover*** 8% 33% 25% 37% 41% 23%
SEE NOTES TO FINANCIAL STATEMENTS.
58
================================================================================
FINANCIAL HIGHLIGHTS
================================================================================
PERIOD ENDED
SEPT. 30, JUNE 30,
2004 (d) 2004 (e)
----------- -----------
CLASS A
- -------
Net Asset Value, $ 32.69 $ 32.36
Beginning of Period
INVESTMENT ACTIVITIES:
Net Investment Income (0.05) (0.03)
(Loss)
Net Realized and (0.05) 0.36
Unrealized Gains ------- -------
(Losses) on
Investments
Total from Investment (0.10) 0.33
Activities
DISTRIBUTIONS:
Net Investment Income - -
Net Realized Gains - -
------- -------
Total Distributions - -
------- -------
Net Asset Value, End of $ 32.59 $ 32.69
Period
Total Return* (0.31%)(a) 1.02%(a)
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of $ 1,771 $ 882
Period (000's)
Ratio of Expenses to 1.55%(b) 1.54%(b)
Average Net Assets
Ratio of Net Investment (0.80%)(b) (1.08%)(b)
Income (Loss) to
Average Net Assets
Ratio of Expenses to 1.94%(b) 2.64%(b)
Average Net
Assets**
Portfolio Turnover*** 8% 33%
CLASS C
- -------
Net Asset Value, $ 32.63 $ 32.36
Beginning of Period
INVESTMENT ACTIVITIES:
Net Investment Income (0.12) (0.06)
(Loss)
Net Realized and (0.04) 0.33
Unrealized Gains ------- -------
(Losses) on
Investments
Total from Investment (0.16) 0.27
Activities
DISTRIBUTIONS:
Net Investment Income - -
Net Realized Gains - -
------- -------
Total Distributions - -
------- -------
Net Asset Value, End of $ 32.47 $ 32.63
Period
Total Return* (0.49%)(a) 0.83%(a)
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of $ 196 $ 202
Period (000's)
Ratio of Expenses to 2.30%(b) 2.30%(b)
Average Net Assets
Ratio of Net Investment (1.58%)(b) (1.88%)(b)
Income (Loss) to
Average Net Assets
Ratio of Expenses to 2.52%(b) 3.18%(b)
Average Net
Assets**
Portfolio Turnover*** 8% 33%
PERIOD ENDED
SEPT. 30, JUNE 30,
2004 (d) 2004 (e)
------------ ------------
CLASS R
- -------
Net Asset Value, $ 32.66 $ 32.36
Beginning of Period
INVESTMENT ACTIVITIES:
Net Investment Income (0.08) (0.06)
(Loss)
Net Realized and (0.04) 0.36
Unrealized Gains ------- -------
(Losses) on
Investments
Total from Investment (0.12) 0.30
Activities
DISTRIBUTIONS:
Net Investment Income - -
Net Realized Gains - -
------- -------
Total Distributions - -
------- -------
Net Asset Value, End of $ 32.54 $ 32.66
Period
Total Return* (0.37%)(a) 0.93%(a)
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of $ 3 $ 3
Period (000's)
Ratio of Expenses to 1.76%(b) 1.82%(b)
Average Net Assets
Ratio of Net Investment (1.05%)(b) (0.98%)(b)
Income (Loss) to
Average Net Assets
Ratio of Expenses to 1.95%(b) 2.38%(b)
Average Net
Assets**
Portfolio Turnover*** 8% 33%
* Excludes sales charge.
** During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratio would have been as indicated.
*** Portfolio turnover is calculated on the basis of the fund as a whole
without distinguishing between the classes of shares issued.
(a) Not annualized.
(b) Annualized.
(c) There were no waivers or reimbursements during the period.
(d) For the period from July 1, 2004 to September 30, 2004.
(e) For the period from April 19, 2004 (commencement of operations) to June
30, 2004.
(f) The pre-existing shares were designated Class S shares as of April 19,
2004.
SEE NOTES TO FINANCIAL STATEMENTS.
59
================================================================================
FINANCIAL HIGHLIGHTS
================================================================================
Tamarack Value Fund
- --------------------------------------------------------------------------------
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD INDICATED)
PERIOD ENDED YEAR ENDED JUNE 30,
SEPT. 30, -----------------------------------------------------------------
2004 (d) 2004 (f) 2003 2002 2001 2000
------------ -------- -------- -------- -------- --------
CLASS S
- -------
Net Asset Value, Beginning of $ 44.20 $ 37.98 $ 42.85 $ 45.43 $ 38.76 $ 51.36
Period
INVESTMENT ACTIVITIES:
Net Investment Income (Loss) 0.14 0.56 0.45 0.44 0.65 1.27
Net Realized and Unrealized 0.71 6.47 (4.88) (1.87) 7.12 (9.35)
Gains (Losses) on Investments -------- -------- -------- -------- -------- ---------
Total from Investment Activities 0.85 7.03 (4.43) (1.43) 7.77 (8.08)
DISTRIBUTIONS:
Net Investment Income - (0.41) (0.44) (0.07) (0.90) (0.96)
Return of Capital - - - (0.41) - -
Net Realized Gains - (0.40) - (0.67) (0.20) (3.56)
-------- -------- -------- -------- -------- ---------
Total Distributions - (0.81) (0.44) (1.15) (1.10) (4.52)
-------- -------- -------- -------- -------- ---------
Net Asset Value, End of Period $ 45.05 $ 44.20 $ 37.98 $ 42.85 $ 45.43 $ 38.76
Total Return* 1.92% (a) 18.60% (10.26%) (3.02%) 20.30% (15.93%)
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000's) $379,023 $386,932 $373,781 $436,487 $495,817 $528,469
Ratio of Expenses to Average Net 0.96%(b) 0.96% 0.96% 0.96% 0.96% 0.96%
Assets
Ratio of Net Investment Income 1.22% (b) 1.30% 1.24% 1.02% 1.38% 2.41%
to Average Net Assets
Ratio of Expenses to Average Net 1.15% (b) 1.14% 0.99% (c) (c) (c)
Assets**
Portfolio Turnover*** 5% 14% 78% 25% 27% 18%
SEE NOTES TO FINANCIAL STATEMENTS.
60
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FINANCIAL HIGHLIGHTS
================================================================================
PERIOD ENDED
SEPT. 30, JUNE 30,
2004 (d) 2004 (e)
------------- -----------
CLASS A
- -------
Net Asset Value, $ 44.18 $ 44.16
Beginning of Period
INVESTMENT ACTIVITIES:
Net Investment Income (0.01) 0.08
(Loss)
Net Realized and 0.84 (0.06)
Unrealized Gains ------- -------
(Losses) on
Investments
Total from Investment 0.83 0.02
Activities
DISTRIBUTIONS:
Net Investment Income - -
Return of Capital - -
Net Realized Gains - -
------- -------
Total Distributions - -
------- -------
Net Asset Value, End of $ 45.01 $ 44.18
Period
Total Return* 1.88%(a) 0.05%(a)
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of $ 717 $ 295
Period (000's)
Ratio of Expenses to 1.21%(b) 1.21%(b)
Average Net Assets
Ratio of Net Investment 1.08%(b) 1.43%(b)
Income to Average
Net Assets
Ratio of Expenses to 1.65%(b) 1.72%(b)
Average Net
Assets**
Portfolio Turnover*** 5% 14%
CLASS C
- -------
Net Asset Value, $ 44.11 $ 44.16
Beginning of Period
INVESTMENT ACTIVITIES:
Net Investment Income -(g) 0.04
(Loss)
Net Realized and 0.74 (0.09)
Unrealized Gains ------- -------
(Losses) on
Investments
Total from Investment 0.74 (0.05)
Activities
DISTRIBUTIONS:
Net Investment Income - -
Return of Capital - -
Net Realized Gains - -
------- -------
Total Distributions - -
------- -------
Net Asset Value, End of $ 44.85 $ 44.11
Period
Total Return* 1.68%(a) (0.11%)(a)
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of $ 5 $ 5
Period (000's)
Ratio of Expenses to 1.96%(b) 1.97%(b)
Average Net Assets
Ratio of Net Investment 0.21%(b) 0.57%(b)
Income to Average
Net Assets
Ratio of Expenses to 2.17%(b) 2.20%(b)
Average Net
Assets**
Portfolio Turnover*** 5% 14%
PERIOD ENDED
SEPT. 30, JUNE 30,
2004 (d) 2004 (e)
------------- ------------
CLASS R
- -------
Net Asset Value, $ 44.16 $ 44.16
Beginning of Period
INVESTMENT ACTIVITIES:
Net Investment Income 0.08 0.09
(Loss)
Net Realized and 0.71 (0.09)
Unrealized Gains ------- -------
(Losses) on
Investments
Total from Investment 0.79 -
Activities
DISTRIBUTIONS:
Net Investment Income - -
Return of Capital - -
Net Realized Gains - -
------- -------
Total Distributions - -
------- -------
Net Asset Value, End of $ 44.95 $ 44.16
Period
Total Return* 1.79%(a) 0.00%(a)
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of $ 3 $ 3
Period (000's)
Ratio of Expenses to 1.44%(b) 1.45%(b)
Average Net Assets
Ratio of Net Investment 0.74%(b) 1.08%(b)
Income to Average
Net Assets
Ratio of Expenses to 1.65%(b) 1.72%(b)
Average Net
Assets**
Portfolio Turnover*** 5% 14%
* Excludes sales charge.
** During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratio would have been as indicated.
*** Portfolio turnover is calculated on the basis of the fund as a whole
without distinguishing between the classes of shares issued.
(a) Not annualized.
(b) Annualized.
(c) There were no waivers or reimbursements during the period.
(d) For the period from July 1, 2004 to September 30, 2004.
(e) For the period from April 19, 2004 (commencement of operations) to June
30, 2004.
(f) The pre-existing shares were designated Class S shares as of April 19,
2004.
(g) Less than $0.01 per share.
SEE NOTES TO FINANCIAL STATEMENTS.
61
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FINANCIAL HIGHLIGHTS
================================================================================
Tamarack Microcap Value Fund
- --------------------------------------------------------------------------------
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD INDICATED)
PERIOD ENDED YEAR ENDED JUNE 30,
SEPT. 30, --------------------------------------------------------------
2004 (d) 2004 (f) 2003 2002 2001 2000
-------------- -------- -------- -------- -------- --------
CLASS S
- -------
Net Asset Value, Beginning of $ 19.14 $ 13.60 $ 14.60 $ 13.23 $ 12.26 $ 12.06
Period
INVESTMENT ACTIVITIES:
Net Investment Income (Loss) 0.01 0.05 0.05 0.03 0.13 0.09
Net Realized and Unrealized (0.29) 5.60 (0.72) 1.58 1.74 1.04
Gains (Losses) on Investments -------- -------- ------- ------- ------- -------
Total from Investment Activities (0.28) 5.65 (0.67) 1.61 1.87 1.13
DISTRIBUTIONS:
Net Investment Income - (0.05) (0.04) (0.02) (0.13) (0.07)
Net Realized Gains - (0.06) (0.29) (0.22) (0.77) (0.86)
-------- -------- ------- ------- ------- -------
Total Distributions - (0.11) (0.33) (0.24) (0.90) (0.93)
-------- -------- ------- ------- ------- -------
Net Asset Value, End of Period $ 18.86 $ 19.14 $ 13.60 $ 14.60 $ 13.23 $ 12.26
Total Return* (1.46%)(a) 41.63% (4.55%) 12.44% 16.82% 9.91%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000's) $218,871 $234,956 $92,202 $96,312 $62,162 $45,440
Ratio of Expenses to Average Net 1.03%(b) 1.03% 1.03% 1.03% 1.03% 1.07%
Assets
Ratio of Net Investment Income 0.22%(b) 0.31% 0.36% 0.26% 1.20% 0.66%
to Average Net Assets
Ratio of Expenses to Average Net 1.16%(b) 1.20% 1.08% (c) (c) (c)
Assets**
Portfolio Turnover*** 3% 11% 17% 34% 29% 18%
SEE NOTES TO FINANCIAL STATEMENTS.
62
================================================================================
FINANCIAL HIGHLIGHTS
================================================================================
PERIOD ENDED
SEPT. 30, JUNE 30,
2004 (d) 2004 (e)
------------ ------------
CLASS A
- -------
Net Asset Value, $ 19.12 $ 19.04
Beginning of Period
INVESTMENT ACTIVITIES:
Net Investment Income (0.01) -
(Loss)
Net Realized and (0.28) 0.08
Unrealized Gains ------- --------
(Losses) on
Investments
Total from Investment (0.29) 0.08
Activities
DISTRIBUTIONS:
Net Investment Income - -
Net Realized Gains - -
------- --------
Total Distributions - -
------- --------
Net Asset Value, End of $ 18.83 $ 19.12
Period
Total Return* (1.52%)(a) 0.42%(a)
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of $ 1,522 $ 405
Period (000's)
Ratio of Expenses to 1.28%(b) 1.26%(b)
Average Net Assets
Ratio of Net Investment 0.04%(b) 0.00%(b)
Income to Average
Net Assets
Ratio of Expenses to 1.63%(b) 1.91%(b)
Average Net
Assets**
Portfolio Turnover*** 3% 11%
CLASS C
- -------
Net Asset Value, $ 19.09 $ 19.04
Beginning of Period
Net Investment Income (0.02) (0.02)
(Loss)
INVESTMENT ACTIVITIES:
Net Realized and (0.30) 0.07
Unrealized Gains ------- --------
(Losses) on
Investments
Total from Investment (0.32) 0.05
Activities
DISTRIBUTIONS:
Net Investment Income - -
Net Realized Gains - -
------- --------
Total Distributions - -
------- --------
Net Asset Value, End of $ 18.77 $ 19.09
Period
Total Return* (1.68%)(a) 0.26%(a)
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of $ 167 $ 4
Period (000's)
Ratio of Expenses to 2.03%(b) 2.03%(b)
Average Net Assets
Ratio of Net Investment (0.70%)(b) (0.62%)(b)
Income to Average
Net Assets
Ratio of Expenses to 2.06%(b) 2.22%(b)
Average Net
Assets**
Portfolio Turnover*** 3% 11%
PERIOD ENDED
SEPT. 30, JUNE 30,
2004 (d) 2004 (e)
------------ ------------
CLASS R
- -------
Net Asset Value, $ 19.11 $ 19.04
Beginning of Period
INVESTMENT ACTIVITIES:
Net Investment Income (0.01) -
(Loss)
Net Realized and (0.29) 0.07
Unrealized Gains ------- --------
(Losses) on
Investments
Total from Investment (0.30) 0.07
Activities
DISTRIBUTIONS:
Net Investment Income - -
Net Realized Gains - -
------- --------
Total Distributions - -
------- --------
Net Asset Value, End of $ 18.81 $ 19.11
Period
Total Return* (1.57%)(a) 0.37%(a)
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of $ 94 $ 104
Period (000's)
Ratio of Expenses to 1.53%(b) 1.49%(b)
Average Net Assets
Ratio of Net Investment (0.29%) (b) 0.15% (b)
Income to Average
Net Assets
Ratio of Expenses to 1.67%(b) 2.17%(b)
Average Net
Assets**
Portfolio Turnover*** 3% 11%
* Excludes sales charge.
** During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratio would have been as indicated.
*** Portfolio turnover is calculated on the basis of the fund as a whole
without distinguishing between the classes of shares issued.
(a) Not annualized.
(b) Annualized.
(c) There were no waivers or reimbursements during the period.
(d) For the period from July 1, 2004 to September 30, 2004.
(e) For the period from April 19, 2004 (commencement of operations) to June
30, 2004.
(f) The pre-existing shares were designated Class S shares as of April 19,
2004.
SEE NOTES TO FINANCIAL STATEMENTS.
63
================================================================================
FINANCIAL HIGHLIGHTS
================================================================================
Tamarack Small Cap International Fund
- --------------------------------------------------------------------------------
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD INDICATED)
PERIOD ENDED YEAR ENDED JUNE 30,
SEPT. 30, --------------------------------------------------------
2004 (c) 2004 (e) 2003 2002 2001 (f)
------------ ---------- ---------- ---------- --------------
CLASS S
- -------
Net Asset Value, Beginning of $ 10.53 $ 7.58 $ 7.32 $ 8.56 $ 10.00
Period
INVESTMENT ACTIVITIES:
Net Investment Income (Loss) - - 0.02 (0.06) (0.02)
Net Realized and Unrealized (0.71) 2.95 0.71 (1.18) (1.42)
Gains (Losses) on Investments ------- ------- ------- ------- -------
Total from Investment Activities (0.71) 2.95 0.73 (1.24) (1.44)
DISTRIBUTIONS:
Net Investment Income - - - - -
Return of Capital - - (0.47) - -
Net Realized Gains - - - - -
------- ------- ------- ------- -------
Total Distributions - - (0.47) - -
------- ------- ------- ------- -------
Net Asset Value, End of Period $ 9.82 $ 10.53 $ 7.58 $ 7.32 $ 8.56
Total Return* (6.74%)(a) 38.92% 9.77% (14.45%) (14.40%)(a)
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000's) $ 4,785 $ 5,092 $ 3,286 $ 2,993 $ 3,506
Ratio of Expenses to Average Net 1.60%(b) 1.60% 1.60% 1.60% 1.60%(b)
Assets
Ratio of Net Investment Income (0.06%)(b) 0.01% (0.03%) (0.75%) (0.36%)(b)
(Loss) to Average Net Assets
Ratio of Expenses to Average Net 3.90%(b) 5.12% 2.06% 2.71% 2.14%(b)
Assets**
Portfolio Turnover*** 12% 50% 62% 163% 37%
SEE NOTES TO FINANCIAL STATEMENTS.
64
================================================================================
FINANCIAL HIGHLIGHTS
================================================================================
PERIOD ENDED
SEPT. 30, JUNE 30,
2004 (c) 2004 (d)
-------------- --------------
CLASS A
- -------
Net Asset Value, $ 10.53 $ 10.37
Beginning of Period
INVESTMENT ACTIVITIES:
Net Investment Income (0.01) 0.03
(Loss)
Net Realized and (0.71) 0.13
Unrealized Gains ------- -------
(Losses) on
Investments
Total from Investment (0.72) 0.16
Activities
DISTRIBUTIONS:
Net Investment Income - -
Return of Capital - -
Net Realized Gains - -
------- -------
Total Distributions - -
------- -------
Net Asset Value, End of $ 9.81 $ 10.53
Period
Total Return* (6.84%)(a) 1.54%(a)
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of $ 207 $ 223
Period (000's)
Ratio of Expenses to 1.85%(b) 1.86%(b)
Average Net Assets
Ratio of Net Investment (0.31%)(b) 1.60%(b)
Income (Loss) to
Average Net Assets
Ratio of Expenses to 4.41%(b) 9.43%(b)
Average Net
Assets**
Portfolio Turnover*** 12% 50%
CLASS C
- -------
Net Asset Value, $ 10.51 $ 10.37
Beginning of Period
INVESTMENT ACTIVITIES:
Net Investment Income (0.03) 0.02
(Loss)
Net Realized and (0.70) 0.12
Unrealized Gains ------- -------
(Losses) on
Investments
Total from Investment (0.73) 0.14
Activities
DISTRIBUTIONS:
Net Investment Income - -
Return of Capital - -
Net Realized Gains - -
------- -------
Total Distributions - -
------- -------
Net Asset Value, End of $ 9.78 $ 10.51
Period
Total Return* (6.95%)(a) 1.35%(a)
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of $ 3 $ 3
Period (000's)
Ratio of Expenses to 2.57%(b) 2.56%(b)
Average Net Assets
Ratio of Net Investment (1.02%)(b) 1.20%(b)
Income (Loss) to
Average Net Assets
Ratio of Expenses to 4.96%(b) 8.66%(b)
Average Net
Assets**
Portfolio Turnover*** 12% 50%
PERIOD ENDED
SEPT. 30, JUNE 30,
2004 (c) 2004 (d)
-------------- --------------
CLASS R
- -------
Net Asset Value, $ 10.53 $ 10.37
Beginning of Period
INVESTMENT ACTIVITIES:
Net Investment Income (0.02) 0.03
(Loss)
Net Realized and (0.71) 0.13
Unrealized Gains ------- -------
(Losses) on
Investments
Total from Investment (0.73) 0.16
Activities
DISTRIBUTIONS:
Net Investment Income - -
Return of Capital - -
Net Realized Gains - -
------- -------
Total Distributions - -
------- -------
Net Asset Value, End of $ 9.80 $ 10.53
Period
Total Return* (6.93%)(a) 1.54%(a)
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of $ 3 $ 3
Period (000's)
Ratio of Expenses to 2.07%(b) 2.06%(b)
Average Net Assets
Ratio of Net Investment (0.53%)(b) 1.69%(b)
Income (Loss) to
Average Net Assets
Ratio of Expenses to 4.49%(b) 8.23%(b)
Average Net
Assets**
Portfolio Turnover*** 12% 50%
* Excludes sales charge.
** During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratio would have been as indicated.
*** Portfolio turnover is calculated on the basis of the fund as a whole
without distinguishing between the classes of shares issued.
(a) Not annualized.
(b) Annualized.
(c) For the period from July 1, 2004 to September 30, 2004.
(d) For the period from April 19, 2004 (commencement of operations) to June
30, 2004.
(e) The pre-existing shares were designated Class S shares as of April 19,
2004.
(f) For the period from December 19, 2000 (commencement of operations) to June
30, 2001.
SEE NOTES TO FINANCIAL STATEMENTS.
65
================================================================================
NOTES TO FINANCIAL STATEMENTS
================================================================================
September 30, 2004
- --------------------------------------------------------------------------------
1. ORGANIZATION
Tamarack Funds Trust ("Tamarack") is registered under the Investment Company
Act of 1940 (as amended) as an open-end management investment company. Tamarack
was organized as a Delaware statutory trust on December 16, 2003. Effective
April 16, 2004, and based on approval of shareholders, seventeen separate
investment portfolios were reorganized as investment portfolios of Tamarack
with a new fiscal year end of September 30th. This annual report includes the
following eight investment portfolios ("Funds"):
- - Tamarack Large Cap Equity Fund ("Large Cap Equity Fund")
- - Tamarack Mid Cap Equity Fund ("Mid Cap Equity Fund")
- - Tamarack Small Cap Equity Fund ("Small Cap Equity Fund")
- - Tamarack Enterprise Fund ("Enterprise Fund")
- - Tamarack Enterprise Small Cap Fund ("Enterprise Small Cap Fund")
- - Tamarack Value Fund ("Value Fund")
- - Tamarack Microcap Value Fund ("Microcap Value Fund")
- - Tamarack Small Cap International Fund ("Small Cap International Fund")
The Large Cap Equity, Mid Cap Equity, Small Cap Equity, Enterprise and
Enterprise Small Cap Funds offer five share classes: Class A, Class C, Class R,
Class I and Class S shares. Currently, there are no assets in Class I shares of
the Enterprise Small Cap Fund, therefore the class is not presented in the
financial statements. The Enterprise Small Cap, Value, Microcap Value and Small
Cap International Funds offer four share classes: Class A, Class C, Class R and
Class S shares. Class A shares are offered with a 5.75% maximum front-end sales
charge and a 1.00% contingent deferred sales charge ("CDSC") for redemption
within 12 months of a $1 million or greater purchase. Class C shares are
offered at net asset value (i.e. no front-end sales charge), but are subject to
a CDSC of 1.00% for redemptions within 12 months of purchase. Class R and Class
I shares are not subject to either a front-end sales charge or CDSC. Class S
shares are closed to new investors.
Voyageur Asset Management Inc. ("Voyageur") acts as the investment advisor for
Tamarack. The officers of Tamarack ("Fund Management") are also employees of
Voyageur or its affiliates.
Under the Funds' organizational documents, the Funds' officers and trustees are
indemnified against certain liabilities arising out of the performance of their
duties related to the Funds. In addition, in the normal course of business, the
Funds enter into contracts with their vendors and others that provide for
indemnification by the Funds in certain situations. These situations may
involve future, unknown claims made against the Funds. However, any risk of
loss to the Funds which may arise from such claims is expected to be remote.
- --------------------------------------------------------------------------------
2. SIGNIFICANT ACCOUNTING POLICIES
Summarized below are the significant accounting policies of the Funds. These
policies conform to accounting principles generally accepted in the United
States of America ("GAAP"). Fund management follows these policies when
preparing financial statements. Management may also be required to make
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the reported amounts of
income and expenses for the period. Actual results could differ from those
estimates.
66
================================================================================
NOTES TO FINANCIAL STATEMENTS
================================================================================
SECURITY VALUATION:
The value of an equity security traded on one or more U.S. exchanges shall be
valued at the last available quoted sale price on the primary trading exchange
as of the Valuation Time. Valuation Time is as of the close of regular trading
on the New York Stock Exchange (usually 4:00 p.m. Eastern Time). Short-term
securities with less than 60 days to maturity at time of purchase are valued at
amortized cost. If there was no sale on the primary exchange on the day the net
asset value is calculated ("Value Date"), the most recent bid quotation
generally will be used. In cases where neither closing prices nor bid prices
are available, or where those prices do not accurately reflect the value of the
security, a security will be valued in accordance with procedures that Tamarack
has established to determine a security's fair value. These procedures are also
used to determine the fair value of a security if a significant event occurs
that materially affects the value of the security. Foreign equity securities
generally are valued in their national currency at the latest available quoted
sale price as of the close of trading on the foreign exchange or other
principal market on which the security is traded. In the absence of current
trading activity, the securities will be valued at the last bid quotation. The
value is then converted into its U.S. dollar equivalent using the latest
foreign exchange bid quotation as of the Value Time. This report presents
information as of Tamarack's fiscal year end of September 30, 2004.
INVESTMENT TRANSACTIONS:
Security transactions are accounted for on the date the security is bought or
sold ("trade date"). Long-term investment transactions are recorded on a trade
date plus one basis, except for on the last day of the annual or semi-annual
financial reporting period, when they are recorded on trade date. Dividend
income is recorded on the ex-dividend date. Securities gains and losses are
calculated based on the costs of the specific security (also known as
identified cost basis). Interest income is recognized on the accrual basis and
includes, where applicable, the amortization or accretion of premium or
discount.
EXPENSES, INVESTMENT INCOME AND GAIN/LOSS ALLOCATION:
Each Fund pays the expenses that are directly related to its operations, such
as trading costs or portfolio management fees. Expenses incurred by Tamarack on
behalf of multiple Funds, such as trustee or legal fees, are allocated
proportionately between each of the Funds. Expense allocation may either be
based on each Fund's net assets, or on some other reasonable basis such as an
equal allocation across all Funds, depending on the nature of the expense.
Individual share classes within a Fund are charged expenses specific to that
class, such as sales and distribution fees. Expenses other than class specific
expenses are allocated daily to each class based upon the proportion of
relative net assets. Investment income and realized and unrealized gains or
losses are allocated to each class of shares based on relative net assets.
FINANCIAL INSTRUMENTS:
FUTURES CONTRACTS - The Funds may enter into futures contracts in an effort to
hedge against market risk. A futures contract on a securities index is an
agreement obligating one party to pay, and entitling the other party to
receive, during the term of the contract, cash payments based on the level of a
specified securities index. Put and call options on futures contracts would
give a Fund the right (but not the obligation) to sell or to purchase for a
specified price the underlying futures contract at any time during the option
period. Futures transactions involve brokerage costs and require a Fund to
segregate assets to cover contracts that would require it to purchase
securities or
67
================================================================================
NOTES TO FINANCIAL STATEMENTS
================================================================================
currencies. A Fund may lose the expected benefit of futures transactions if
interest rates, exchange rates or securities prices change in an unanticipated
manner. Such unanticipated changes may also result in lower overall performance
than if a Fund had not entered into any futures transactions.
Upon entering into a futures contract, a Fund is required to pledge to the
broker an amount of cash, U.S. government securities, or other assets, equal to
a certain percentage of the contract amount. Subsequent payments are made or
received by the Fund each day, depending on the daily fluctuations in fair
value of the underlying index. A Fund would recognize a gain or loss each day
equal to the income received or paid. The Funds did not enter into futures
contracts during the period ended September 30, 2004.
FOREIGN CURRENCY TRANSLATION:
The accounting records of the Funds are maintained in U.S. dollars. The Funds
do not intend to convert their holdings of foreign currencies into U.S. dollars
on a daily basis. However, investment securities and other assets and
liabilities of the Funds denominated in a foreign currency are translated daily
into U.S. dollars at current exchange rates from time to time. Purchases and
sales of securities, income receipts and expense payments are translated into
U.S. dollars at the exchange rate on the date of the transaction.
The Funds do not separately disclose that portion of the results of operations
resulting from changes in foreign exchange rates on investments from
fluctuations arising from changes in market prices of securities held. Such
changes in rates are included with the net realized and unrealized gain or loss
from investments and foreign currencies. Net realized foreign currency exchange
gains or losses arise from sales and maturities of portfolio securities, sales
of foreign currencies, currency exchange fluctuations between the trade and
settlement dates of securities transactions, and the differences between the
amounts of assets and liabilities recorded and the U.S. dollar equivalents of
the amounts actually received or paid.
DISTRIBUTIONS TO SHAREHOLDERS:
Each of the Funds pays out any income that they receive, less expenses, in the
form of dividends to its shareholders. Income dividends and capital gains on
each Fund are declared and paid at least annually. Distributions to
shareholders are recorded on the ex-dividend date. The amount of dividends and
distributions are calculated based on federal income tax regulations, which may
differ from GAAP. These "book/tax" differences may be either temporary or
permanent in nature. To the extent these differences are permanent (e.g.,
expiring capital loss carry forward and foreign currency transactions), they
are reclassified within a Fund's capital accounts based on their federal tax
basis treatment. Such differences are not reflected in the calculation of the
financial highlights. The Value Fund utilizes earnings and profits distributed
to shareholders on redemption of shares as a part of the dividends paid
deduction for income tax purposes.
- --------------------------------------------------------------------------------
3. AGREEMENTS AND OTHER TRANSACTIONS WITH AFFILIATES
Tamarack, on behalf of the Funds, has entered into an investment advisory
agreement with Voyageur under which Voyageur manages each Fund's assets and
furnishes related office facilities, equipment, research and personnel. The
agreement requires each Fund to pay Voyageur a monthly fee based upon average
daily net assets. Under the terms of
68
================================================================================
NOTES TO FINANCIAL STATEMENTS
================================================================================
the advisory contracts, Voyageur is entitled to receive fees based on a
percentage of the average daily net assets of each of the Funds as follows:
Average Daily Net
Assets of Fund Annual Rate
-------------- -----------
Large Cap Equity Fund 0.70%
Mid Cap Equity Fund 0.70%
Small Cap Equity Fund 0.70%
Enterprise Fund Up to $30 million 1.40%
Over $30 million 0.90%
Enterprise Small Cap Fund Up to $30 million 1.40%
Over $30 million 0.90%
Value Fund 0.85%
Microcap Value Fund 0.90%
Small Cap International Fund 1.45%
Voyageur has contractually agreed to waive fees and/or make payments in order
to keep total operating expenses of the Class S shares of each fund at the
following levels:
Annual Rate
-----------
Large Cap Equity Fund Class S 0.85%
Enterprise Fund Class S 1.08%
Enterprise Small Cap Fund Class S 1.30%
Value Fund Class S 0.96%
Microcap Value Fund Class S 1.03%
Small Cap International Fund Class S 1.60%
This expense limitation agreement is in place until May 1, 2005 for the Large
Cap Equity, Value, Microcap and Small Cap International Funds. This expense
limitation agreement is in place until September 30, 2005 for the Enterprise
and Enterprise Small Cap Funds. Voyageur may also voluntarily waive and/or
reimburse operating expenses of any Fund from time to time. Any such voluntary
program may be changed or eliminated at any time without notice.
Voyageur employs, at its own expense, Babson Capital Management LLC as
sub-advisor to provide day-to-day portfolio management for the Enterprise,
Enterprise Small Cap, Value and Microcap Value Funds. Voyageur employs, at its
own expense, Denver Investment Advisors LLC as sub-advisor to provide
day-to-day portfolio management for the Small Cap International Fund.
Voyageur serves as administrator to the Funds and BISYS Fund Services Ohio,
Inc. ("BISYS") serves as sub-administrator. Services provided under the
administrative services contract include providing day-to-day administration of
matters related to the Funds, maintenance of their records and the preparation
of reports. Effective April 16, 2004 and under the terms of the administrative
services contract, Voyageur receives from each Fund a fee, payable monthly, at
the annual rate of 0.10% of each Fund's average daily net assets. For its
services as sub-administrator, BISYS receives a fee payable by Voyageur out of
Voyageur's own resources.
69
================================================================================
NOTES TO FINANCIAL STATEMENTS
================================================================================
- --------------------------------------------------------------------------------
4. FUND DISTRIBUTION
Each of the Funds has adopted a Master Distribution 12b-1 Plan (the "Plan") in
which Tamarack Distributors Inc. (the "Distributor") acts as the Funds'
distributor. The Distributor is an affiliate of Voyageur. The Plan permits each
Fund to make payments for, or to reimburse the Distributor monthly for,
distribution-related costs and expenses of marketing shares of each share class
covered under the Plan. Plan fees are based on average annual daily net assets
of the applicable class. The Distributor, subject to applicable legal
requirements, may waive a Plan fee voluntarily, in whole or in part. The
following chart shows the maximum Plan fee rate for each class.
Class A Class C Class R
------------ --------- ----------
12b-1 Plan Fee 0.50%* 1.00% 0.50%
*The Distributor is currently waiving 0.25% of the Plan fee for Class A. These
voluntary waivers will continue until at least March 31, 2005.
For the period from May 1, 2004 to September 30, 2004 for Large Cap Equity, Mid
Cap Equity and Small Cap Equity, and for the period from July 1, 2004 to
September 30, 2004 for Enterprise, Enterprise Small Cap, Value, Microcap Value
and Small Cap International Funds, the Distributor received commissions of
$20,931 from front-end sales charges of Class A shares and $4,711 from CDSC
fees from Class C shares of the Funds, of which $3,496 was allowed back to
affiliated broker-dealers of the Funds.
- --------------------------------------------------------------------------------
5. SECURITIES TRANSACTIONS
The cost of securities purchased and proceeds from securities sold (excluding
short-term securities) for the period ended September 30, 2004 were as follows:
Purchases Sales
-------------- --------------
Large Cap Equity Fund $33,354,742 $61,434,978
Mid Cap Equity Fund 19,042,911 35,138,505
Small Cap Equity Fund 2,113,268 5,975,647
Enterprise Fund 23,080,846 35,496,953
Enterprise Small Cap Fund 5,727,245 6,852,981
Value Fund 20,149,091 26,691,725
Microcap Value Fund 6,776,320 12,591,183
Small Cap International Fund 893,897 556,711
- --------------------------------------------------------------------------------
6. CAPITAL SHARE TRANSACTIONS
Tamarack is authorized to issue an unlimited number of shares of beneficial
interest ("shares outstanding") without par value. Transactions in shares of
the Funds are summarized below:
70
================================================================================
NOTES TO FINANCIAL STATEMENTS
================================================================================
TAMARACK LARGE CAP EQUITY FUND
FOR THE FOR THE FOR THE
PERIOD ENDED YEAR ENDED YEAR ENDED
SEPT. 30, 2004 (c) APR. 30, 2004 APR. 30, 2003
-------------------- --------------------- ----------------
CAPITAL TRANSACTIONS:
CLASS A
Proceeds from shares issued $ 1,342,677 $ 2,160,504 $ 1,538,621
Proceeds from shares exchanged from Class B - 1,987,261 -
Dividends reinvested - - 7,313
Cost of shares redeemed (1,418,512) (2,533,741) (2,281,945)
------------ --------------- ------------
Change in Class A $ (75,835) $ 1,614,024 $ (736,011)
------------ --------------- ------------
CLASS B
Proceeds from shares issued $ - $ 18,891 $ 9,035
Dividends reinvested - - 83
Cost of shares redeemed - (463,535) (1,176,765)
Cost of shares exchanged to Class A - (1,987,261) -
------------ --------------- ------------
Change in Class B $ - $ (2,431,905) $ (1,167,647)
------------ --------------- ------------
CLASS I
Proceeds from shares issued $ 551,537 $ 13,734,446 $ 9,517,062
Dividends reinvested - - 34,899
Cost of shares redeemed (8,996,501) (27,086,490) (29,403,728)
------------ --------------- ------------
Change in Class I $ (8,444,964) $(13,352,044) $(19,851,767)
------------ --------------- ------------
CLASS C
Proceeds from shares issued $ - $ 3,275(a) $
Dividends reinvested - - -
Cost of shares redeemed - - -
------------ --------------- ------------
Change in Class C $ - $ 3,275 $ -
------------ --------------- ------------
CLASS R
Proceeds from shares issued $ 62,311 $ 3,275(a) $ -
Dividends reinvested - - -
Cost of shares redeemed - - -
------------ --------------- ------------
Change in Class R $ 62,311 $ 3,275 $ -
------------ --------------- ------------
CLASS S
Proceeds from shares issued $ 1,096,877 $ 75,766(a) $ -
Proceeds from shares issued in connection with merger - 196,009,945(a) -
Dividends reinvested - - -
Cost of shares redeemed (20,453,504) (1,042,227)(a) -
------------ --------------- ------------
Change in Class S ($19,356,627) $195,043,484 $ -
------------ --------------- ------------
Change in net assets from capital transactions $(27,815,115) $180,880,109 $(21,755,425)
============ =============== ============
SHARE TRANSACTIONS:
CLASS A
Issued 133,645 225,968 185,996
Issued in connection with exchange from Class B - 202,575 -
Reinvested - - 840
Redeemed (143,043) (267,598) (267,940)
------------ --------------- ------------
Change in Class A (9,398) 160,945 (81,104)
------------ --------------- ------------
CLASS B
Issued - 11,459 897
Reinvested - - 10
Redeemed - (59,888) (144,837)
Cost of shares exchanged to Class A - (211,862) -
------------ --------------- ------------
Change in Class B - (260,291) (143,930)
------------ --------------- ------------
CLASS I
Issued 54,947 1,429,324 1,150,135
Reinvested - - 4,015
Redeemed (908,488) (2,838,108) (3,436,715)
------------ --------------- ------------
Change in Class I (853,541) (1,408,784) (2,282,565)
------------ --------------- ------------
CLASS C
Issued - 319(a) -
Reinvested - - -
Redeemed - - -
------------ --------------- ------------
Change in Class C - 319 -
------------ --------------- ------------
CLASS R
Issued 6,288 319(a) -
Reinvested - - -
Redeemed - - -
------------ --------------- ------------
Change in Class R 6,288 319 -
------------ --------------- ------------
CLASS S
Issued 110,347 6,031(a) -
Issued in connection with merger - 18,955,270(a) -
Reinvested - - -
Redeemed (2,054,541) (96,982)(a) -
------------ --------------- ------------
Change in Class S (1,944,194) 18,864,319 -
------------ --------------- ------------
Change in shares from capital transactions (2,800,845) 17,356,827 (2,507,599)
============ =============== ============
71
================================================================================
NOTES TO FINANCIAL STATEMENTS
================================================================================
TAMARACK MID CAP EQUITY FUND
FOR THE FOR THE FOR THE
PERIOD ENDED YEAR ENDED YEAR ENDED
SEPT. 30, 2004 (c) APRIL 30, 2004 APRIL 30, 2003
------------------ -------------- --------------
CAPITAL TRANSACTIONS:
CLASS A
Proceeds from shares issued $ 5,844,789 $ 23,573,624 $ 16,476,708
Proceeds from shares exchanged from Class B - 6,045,653 -
Dividends reinvested - - 431,044
Cost of shares redeemed (6,404,133) (18,710,085) (12,374,155)
------------ ------------ ------------
Change in Class A $ (559,344) $ 10,909,192 $ 4,533,597
------------ ------------ ------------
CLASS B
Proceeds from shares issued $ - $ 20,658 $ 101,052
Dividends reinvested - - 90,507
Cost of shares redeemed - (3,028,018) (4,386,652)
Cost of shares exchanged to Class A - (6,045,653) -
------------ ------------ ------------
Change in Class B $ - $ (9,053,013) $ (4,195,093)
------------ ------------ ------------
CLASS I
Proceeds from shares issued $ 1,804,334 $ 21,681,784 $ 45,322,240
Dividends reinvested - - 911,284
Cost of shares redeemed (17,132,569) (74,859,941) (44,195,145)
------------ ------------ ------------
Change in Class I $(15,328,235) $(53,178,157) $ 2,038,379
------------ ------------ ------------
CLASS C
Proceeds from shares issued $ 10,000 $ 3,025(a) $ -
Dividends reinvested - - -
Cost of shares redeemed - - -
------------ ------------ ------------
Change in Class C $ 10,000 $ 3,025 $ -
------------ ------------ ------------
CLASS R
Proceeds from shares issued $ 70,242 $ 3,025(a) $ -
Dividends reinvested - - -
Cost of shares redeemed - - -
------------ ------------ ------------
Change in Class R $ 70,242 $ 3,025 $ -
------------ ------------ ------------
CLASS S
Proceeds from shares issued $ 222,116 $ 4,370(a) $ -
Proceeds from shares issued in connection with merger - - -
Dividends reinvested - - -
Cost of shares redeemed - - -
------------ ------------ ------------
Change in Class S $ 222,116 $ 4,370 $ -
------------ ------------ ------------
Change in net assets from capital transactions $(15,585,221) $(51,311,558) $ 2,376,883
============ ============ ============
SHARE TRANSACTIONS:
CLASS A
Issued 490,556 2,096,445 1,732,854
Issued in connection with exchange from Class B - 506,336 -
Reinvested - - 46,444
Redeemed (535,959) (1,668,623) (1,317,376)
------------ ------------ ------------
Change in Class A (45,403) 934,158 461,922
------------ ------------ ------------
CLASS B
Issued - 47,063 10,344
Reinvested - - 10,494
Redeemed - (343,358) (507,839)
Cost of shares exchanged to Class A - (551,611) -
------------ ------------ ------------
Change in Class B - (847,906) (487,001)
------------ ------------ ------------
CLASS I
Issued 148,303 1,880,365 4,700,778
Reinvested - - 96,147
Redeemed (1,425,559) (6,374,888) (4,636,559)
------------ ------------ ------------
Change in Class I (1,277,256) (4,494,523) 160,366
------------ ------------ ------------
CLASS C
Issued 861 242(a) -
Reinvested - - -
Redeemed - - -
------------ ------------ ------------
Change in Class C 861 242 -
------------ ------------ ------------
CLASS R
Issued 5,994 242(a) -
Reinvested - - -
Redeemed - - -
------------ ------------ ------------
Change in Class R 5,994 242 -
------------ ------------ ------------
CLASS S
Issued 18,681 345(a) -
Issued in connection with merger - - -
Reinvested - - -
Redeemed - - -
------------ ------------ ------------
Change in Class S 18,681 345 -
------------ ------------ ------------
Change in shares from capital transactions (1,297,123) (4,407,442) 135,287
============ ============ ============
72
================================================================================
NOTES TO FINANCIAL STATEMENTS
================================================================================
TAMARACK SMALL CAP EQUITY FUND
FOR THE FOR THE FOR THE
PERIOD ENDED YEAR ENDED YEAR ENDED
SEPT. 30, 2004 (c) APRIL 30, 2004 APRIL 30, 2003
------------------ -------------- --------------
CAPITAL TRANSACTIONS:
CLASS A
Proceeds from shares issued $ 1,189,842 $ 2,106,017 $ 1,636,622
Proceeds from shares exchanged from Class B - 2,202,168 -
Dividends reinvested - - -
Cost of shares redeemed (872,973) (2,597,589) (2,189,243)
------------ ------------ ------------
Change in Class A $ 316,869 $ 1,710,596 $ (552,621)
------------ ------------ ------------
CLASS B
Proceeds from shares issued $ - $ 3,067 $ 60,044
Dividends reinvested - - -
Cost of shares redeemed - (540,799) (726,987)
Cost of shares exchanged to Class A - (2,202,168) -
------------ ------------ ------------
Change in Class B $ - $ (2,739,900) $ (666,943)
------------ ------------ ------------
CLASS I
Proceeds from shares issued $ 198,992 $ 8,599,093 $ 9,875,680
Dividends reinvested - - -
Cost of shares redeemed (4,784,620) (15,037,546) (8,942,701)
------------ ------------ ------------
Change in Class I $ (4,585,628) $ (6,438,453) $ 932,979
------------ ------------ ------------
CLASS C
Proceeds from shares issued $ 229,687 $ 3,275(a) $ -
Dividends reinvested - - -
Cost of shares redeemed (29,190) - -
------------ ------------ ------------
Change in Class C $ 200,497 $ 3,275 $ -
------------ ------------ ------------
CLASS R
Proceeds from shares issued $ 16,441 $ 5,275(a) $ -
Dividends reinvested - - -
Cost of shares redeemed - - -
------------ ------------ ------------
Change in Class R $ 16,441 $ 5,275 $ -
------------ ------------ ------------
CLASS S
Proceeds from shares issued $ 16,418 $ 3,275(a) $ -
Proceeds from shares issued in connection with merger - - -
Dividends reinvested - - -
Cost of shares redeemed - - -
------------ ------------ ------------
Change in Class S $ 16,418 $ 3,275 $ -
------------ ------------ ------------
Change in net assets from capital transactions $ (4,035,403) $ (7,455,932) $ (286,585)
============ ============ ============
SHARE TRANSACTIONS:
CLASS A
Issued 89,307 169,571 161,020
Issued in connection with exchange from Class B - 170,843 -
Reinvested - - -
Redeemed (66,271) (203,991) (222,587)
------------ ------------ ------------
Change in Class A 23,036 136,423 (61,567)
------------ ------------ ------------
CLASS B
Issued - 11,042 5,709
Reinvested - - -
Redeemed - (55,956) (75,173)
Cost of shares exchanged to Class A - (181,547) -
------------ ------------ ------------
Change in Class B - (226,461) (69,464)
------------ ------------ ------------
CLASS I
Issued 14,786 664,168 984,976
Reinvested - - -
Redeemed (356,401) (1,234,140) (897,896)
------------ ------------ ------------
Change in Class I (341,615) (569,972) 87,080
------------ ------------ ------------
CLASS C
Issued 17,537 240(a) -
Reinvested - - -
Redeemed (2,224) - -
------------ ------------ ------------
Change in Class C 15,313 240 -
------------ ------------ ------------
CLASS R
Issued 1,187 388(a) -
Reinvested - - -
Redeemed - - -
------------ ------------ ------------
Change in Class R 1,187 388 -
------------ ------------ ------------
CLASS S
Issued 1,246 237(a) -
Issued in connection with merger - - -
Reinvested - - -
Redeemed - - -
------------ ------------ ------------
Change in Class S 1,246 237 -
------------ ------------ ------------
Change in shares from capital transactions (300,833) (659,145) (43,951)
============ ============ ============
73
================================================================================
NOTES TO FINANCIAL STATEMENTS
================================================================================
TAMARACK ENTERPRISE FUND
FOR THE FOR THE FOR THE
PERIOD ENDED YEAR ENDED YEAR ENDED
SEPT., 2004 (d) JUNE 30, 2004 JUNE 30, 2003
--------------- ------------- -------------
CAPITAL TRANSACTIONS:
CLASS A
Proceeds from shares issued $ 1,475,584 $ 1,812,247(b) $ -
Proceeds from shares exchanged from Class B - - -
Dividends reinvested - - -
Cost of shares redeemed (37,087) - -
------------- ------------- -------------
Change in Class A $ 1,438,497 $ 1,812,247 $ -
------------- ------------- -------------
CLASS B
Proceeds from shares issued $ - $ - $ -
Dividends reinvested - - -
Cost of shares redeemed - - -
Cost of shares exchanged to Class A - - -
------------- ------------- -------------
Change in Class B $ - $ - $ -
------------- ------------- -------------
CLASS I
Proceeds from shares issued $ 26,706,929(e) $ - $ -
Dividends reinvested - - -
Cost of shares redeemed - - -
------------- ------------- -------------
Change in Class I $ 26,706,929 $ - $ -
------------- ------------- -------------
CLASS C
Proceeds from shares issued $ 49,195 $ 22,452(b) $ -
Dividends reinvested - - -
Cost of shares redeemed - - -
------------- ------------- -------------
Change in Class C $ 49,195 $ 22,452 $ -
------------- ------------- -------------
CLASS R
Proceeds from shares issued $ 3,000 $ 3,275(b) $ -
Dividends reinvested - - -
Cost of shares redeemed - - -
------------- ------------- -------------
Change in Class R $ 3,000 $ 3,275 $ -
------------- ------------- -------------
CLASS S
Proceeds from shares issued $ 6,050,929 $ 158,810,085 $ 77,753,773
Proceeds from shares issued in connection with merger - - -
Dividends reinvested - 38,566 529,183
Cost of shares redeemed (24,704,151) (79,156,190) (209,998,143)
------------- ------------- -------------
Change in Class S ($ 18,653,222) $ 79,692,461 $(131,715,187)
------------- ------------- -------------
Change in net assets from capital transactions $ 9,544,399 $ 81,530,435 $(131,715,187)
============= ============= =============
SHARE TRANSACTIONS:
CLASS A
Issued 64,412 78,360(b) -
Issued in connection with exchange from Class B - - -
Reinvested - - -
Redeemed (1,702) - -
------------- ------------- -------------
Change in Class A 62,710 78,360 -
------------- ------------- -------------
CLASS B
Issued - - -
Reinvested - - -
Redeemed - - -
Cost of shares exchanged to Class A - - -
------------- ------------- -------------
Change in Class B - - -
------------- ------------- -------------
CLASS I
Issued 1,119,787(e) - -
Reinvested - - -
Redeemed - - -
------------- ------------- -------------
Change in Class I 1,119,787 - -
------------- ------------- -------------
CLASS C
Issued 2,169 977(b) -
Reinvested - - -
Redeemed - - -
------------- ------------- -------------
Change in Class C 2,169 977 -
------------- ------------- -------------
CLASS R
Issued 135 136(b) -
Reinvested - - -
Redeemed - - -
------------- ------------- -------------
Change in Class R 135 136 -
------------- ------------- -------------
CLASS S
Issued 265,511 7,066,008 5,059,364
Issued in connection with merger - - -
Reinvested - 1,685 30,390
Redeemed (1,086,623) (3,572,168) (13,870,209)
------------- ------------- -------------
Change in Class S (821,112) 3,495,525 (8,780,455)
------------- ------------- -------------
Change in shares from capital transactions 363,689 3,574,998 (8,780,455)
============= ============= =============
74
================================================================================
NOTES TO FINANCIAL STATEMENTS
================================================================================
TAMARACK ENTERPRISE SMALL CAP FUND
FOR THE FOR THE FOR THE
PERIOD ENDED YEAR ENDED YEAR ENDED
SEPT. 30, 2004 (d) JUNE 30, 2004 JUNE 30, 2003
------------------ ------------- -------------
CAPITAL TRANSACTIONS:
CLASS A
Proceeds from shares issued $ 974,709 $ 871,144(b) $ -
Proceeds from shares exchanged from Class B - - -
Dividends reinvested - - -
Cost of shares redeemed (102,607) (27,292)(b) -
------------ ------------ ------------
Change in Class A $ 872,102 $ 843,852 $ -
------------ ------------ ------------
CLASS B
Proceeds from shares issued $ - $ - $ -
Dividends reinvested - - -
Cost of shares redeemed - - -
Cost of shares exchanged to Class A - - -
------------ ------------ ------------
Change in Class B $ - $ - $ -
------------ ------------ ------------
CLASS I
Proceeds from shares issued $ - $ - $ -
Dividends reinvested - - -
Cost of shares redeemed - - -
------------ ------------ ------------
Change in Class I $ - $ - $ -
------------ ------------ ------------
CLASS C
Proceeds from shares issued $ 25,253 $ 187,776(b) $ -
Dividends reinvested - - -
Cost of shares redeemed (29,644) - -
------------ ------------ ------------
Change in Class C ($ 4,391) $ 187,776 $ -
------------ ------------ ------------
CLASS R
Proceeds from shares issued $ - $ 3,275(b) $ -
Dividends reinvested - - -
Cost of shares redeemed - - -
------------ ------------ ------------
Change in Class R $ - $ 3,275 $ -
------------ ------------ ------------
CLASS S
Proceeds from shares issued $ 533,095 $ 14,405,870 $ 9,288,735
Proceeds from shares issued in connection with merger - - -
Dividends reinvested - - 1,044,478
Cost of shares redeemed (2,157,622) (11,554,249) (13,612,663)
------------ ------------ ------------
Change in Class S ($ 1,624,527) $ 2,851,621 $ (3,279,450)
------------ ------------ ------------
Change in net assets from capital transactions $ (756,816) $ 3,886,524 $ (3,279,450)
============ ============ ============
SHARE TRANSACTIONS:
CLASS A
Issued 30,625 27,839(b) -
Issued in connection with exchange from Class B - - -
Reinvested - - -
Redeemed (3,275) (846)(b) -
------------ ------------ ------------
Change in Class A 27,350 26,993 -
------------ ------------ ------------
CLASS B
Issued - - -
Reinvested - - -
Redeemed - - -
Cost of shares exchanged to Class A - - -
------------ ------------ ------------
Change in Class B - - -
------------ ------------ ------------
CLASS I
Issued - - -
Reinvested - - -
Redeemed - - -
------------ ------------ ------------
Change in Class I - - -
------------ ------------ ------------
CLASS C
Issued 802 6,176(b) -
Reinvested - - -
Redeemed (949) - -
------------ ------------ ------------
Change in Class C (147) 6,176 -
------------ ------------ ------------
CLASS R
Issued - 101(b) -
Reinvested - - -
Redeemed - - -
------------ ------------ ------------
Change in Class R - 101 -
------------ ------------ ------------
CLASS S
Issued 16,853 470,482 424,863
Issued in connection with merger - - -
Reinvested - - 43,960
Redeemed (68,346) (384,651) (626,353)
------------ ------------ ------------
Change in Class S (51,493) 85,831 (157,530)
------------ ------------ ------------
Change in shares from capital transactions (24,290) 119,101 (157,530)
============ ============ ============
75
================================================================================
NOTES TO FINANCIAL STATEMENTS
================================================================================
TAMARACK VALUE FUND
FOR THE FOR THE FOR THE
PERIOD ENDED YEAR ENDED YEAR ENDED
SEPT. 30, 2004 (d) JUNE 30, 2004 JUNE 30, 2003
------------------ ------------- -------------
CAPITAL TRANSACTIONS:
CLASS A
Proceeds from shares issued $ 419,458 $ 290,599(b) $ -
Proceeds from shares exchanged from Class B - - -
Dividends reinvested - - -
Cost of shares redeemed (13,388) - -
------------ ------------ ------------
Change in Class A $ 406,070 $ 290,599 $ -
------------ ------------ ------------
CLASS B
Proceeds from shares issued $ - $ - $ -
Dividends reinvested - - -
Cost of shares redeemed - - -
Cost of shares exchanged to Class A - - -
------------ ------------ ------------
Change in Class B $ - $ - $ -
------------ ------------ ------------
CLASS I
Proceeds from shares issued $ - $ - $ -
Dividends reinvested - - -
Cost of shares redeemed - - -
------------ ------------ ------------
Change in Class I $ - $ - $ -
------------ ------------ ------------
CLASS C
Proceeds from shares issued $ 600 $ 4,475(b) $ -
Dividends reinvested - - -
Cost of shares redeemed - - -
------------ ------------ ------------
Change in Class C $ 600 $ 4,475 $ -
------------ ------------ ------------
CLASS R
Proceeds from shares issued $ - $ 3,275(b) $ -
Dividends reinvested - - -
Cost of shares redeemed - - -
------------ ------------ ------------
Change in Class R $ - $ 3,275 $ -
------------ ------------ ------------
CLASS S
Proceeds from shares issued $ 2,844,610 $ 36,828,853 $ 83,748,273
Proceeds from shares issued in connection with merger - - -
Dividends reinvested - 7,260,313 4,270,867
Cost of shares redeemed (17,802,259) (89,961,354) (99,685,751)
------------ ------------ ------------
Change in Class S $(14,957,649) $(45,872,188) $(11,666,611)
------------ ------------ ------------
Change in net assets from capital transactions $(14,550,979) $(45,573,839) $(11,666,611)
============ ============ ============
SHARE TRANSACTIONS:
CLASS A
Issued 9,553 6,688(b) -
Issued in connection with exchange from Class B - - -
Reinvested - - -
Redeemed (299) - -
------------ ------------ ------------
Change in Class A 9,254 6,688 -
------------ ------------ ------------
CLASS B
Issued - - -
Reinvested - - -
Redeemed - - -
Cost of shares exchanged to Class A - - -
------------ ------------ ------------
Change in Class B - - -
------------ ------------ ------------
CLASS I
Issued - - -
Reinvested - - -
Redeemed - - -
------------ ------------ ------------
Change in Class I - - -
------------ ------------ ------------
CLASS C
Issued 14 102(b) -
Reinvested - - -
Redeemed - - -
------------ ------------ ------------
Change in Class C 14 102 -
------------ ------------ ------------
CLASS R
Issued - 74(b) -
Reinvested - - -
Redeemed - - -
------------ ------------ ------------
Change in Class R - 74 -
------------ ------------ ------------
CLASS S
Issued 64,960 881,158 2,326,864
Issued in connection with merger - - -
Reinvested - 170,742 119,366
Redeemed (405,882) (2,138,878) (2,789,637)
------------ ------------ ------------
Change in Class S (340,922) (1,086,978) (343,407)
------------ ------------ ------------
Change in shares from capital transactions (331,654) (1,080,114) (343,407)
============ ============ ============
76
================================================================================
NOTES TO FINANCIAL STATEMENTS
================================================================================
TAMARACK MICROCAP VALUE FUND
FOR THE FOR THE FOR THE
PERIOD ENDED YEAR ENDED YEAR ENDED
SEPT. 30, 2004 (d) JUNE 30, 2004 JUNE 30, 2003
------------------ ------------- -------------
CAPITAL TRANSACTIONS:
CLASS A
Proceeds from shares issued $ 1,094,614 $ 395,773(b) $ -
Proceeds from shares exchanged from Class B - - -
Dividends reinvested - - -
Cost of shares redeemed (11,968) - -
------------- ------------- -------------
Change in Class A $ 1,082,646 $ 395,773 $ -
------------- ------------- -------------
CLASS B
Proceeds from shares issued $ - $ - $ -
Dividends reinvested - - -
Cost of shares redeemed - - -
Cost of shares exchanged to Class A - - -
------------- ------------- -------------
Change in Class B $ - $ - $ -
------------- ------------- -------------
CLASS I
Proceeds from shares issued $ - $ - $ -
Dividends reinvested - - -
Cost of shares redeemed - - -
------------- ------------- -------------
Change in Class I $ - $ - $ -
------------- ------------- -------------
CLASS C
Proceeds from shares issued $ 156,346 $ 3,575(b) $ -
Dividends reinvested - - -
Cost of shares redeemed - - -
------------- ------------- -------------
Change in Class C $ 156,346 $ 3,575 $ -
------------- ------------- -------------
CLASS R
Proceeds from shares issued $ 7,393 $ 103,289(b) $ -
Dividends reinvested - - -
Cost of shares redeemed (15,055) - -
------------- ------------- -------------
Change in Class R ($ 7,662) $ 103,289 $ -
------------- ------------- -------------
CLASS S
Proceeds from shares issued $ 4,261,465 $ 135,935,339 $ 41,992,905
Proceeds from shares issued in connection with merger - - -
Dividends reinvested - 822,848 2,091,769
Cost of shares redeemed (16,170,103) (37,300,490) (40,827,933)
------------- ------------- -------------
Change in Class S ($ 11,908,638) $ 99,457,697 $ 3,256,741
------------- ------------- -------------
Change in net assets from capital transactions $ (10,677,308) $ 99,960,334 $ 3,256,741
============= ============= =============
SHARE TRANSACTIONS:
CLASS A
Issued 60,337 21,185(b) -
Issued in connection with exchange from Class B - - -
Reinvested - - -
Redeemed (662) - -
------------- ------------- -------------
Change in Class A 59,675 21,185 -
------------- ------------- -------------
CLASS B
Issued - - -
Reinvested - - -
Redeemed - - -
Cost of shares exchanged to Class A - - -
------------- ------------- -------------
Change in Class B - - -
------------- ------------- -------------
CLASS I
Issued - - -
Reinvested - - -
Redeemed - - -
------------- ------------- -------------
Change in Class I - - -
------------- ------------- -------------
CLASS C
Issued 8,691 189(b) -
Reinvested - - -
Redeemed - - -
------------- ------------- -------------
Change in Class C 8,691 189 -
------------- ------------- -------------
CLASS R
Issued 406 5,444(b) -
Reinvested - - -
Redeemed (834) - -
------------- ------------- -------------
Change in Class R (428) 5,444 -
------------- ------------- -------------
CLASS S
Issued 232,596 7,588,500 3,453,385
Issued in connection with merger - - -
Reinvested - 47,345 155,835
Redeemed (903,979) (2,137,437) (3,426,704)
------------- ------------- -------------
Change in Class S (671,383) 5,498,408 182,516
------------- ------------- -------------
Change in shares from capital transactions (603,445) 5,525,226 182,516
============= ============= =============
77
================================================================================
NOTES TO FINANCIAL STATEMENTS
================================================================================
TAMARACK SMALL CAP INTERNATIONAL FUND
FOR THE FOR THE FOR THE
PERIOD ENDED YEAR ENDED YEAR ENDED
SEPT. 30, 2004 (d) JUNE 30, 2004 JUNE 30, 2003
------------------ ------------- -------------
CAPITAL TRANSACTIONS:
CLASS A
Proceeds from shares issued $ 58 $ 214,554(b) $ -
Proceeds from shares exchanged from Class B - - -
Dividends reinvested - - -
Cost of shares redeemed - - -
----------- ----------- -----------
Change in Class A $ 58 $ 214,554 $ -
----------- ----------- -----------
CLASS B
Proceeds from shares issued $ - $ - $ -
Dividends reinvested - - -
Cost of shares redeemed - - -
Cost of shares exchanged to Class A - - -
----------- ----------- -----------
Change in Class B $ - $ - $ -
----------- ----------- -----------
CLASS I
Proceeds from shares issued $ - $ - $ -
Dividends reinvested - - -
Cost of shares redeemed - - -
----------- ----------- -----------
Change in Class I $ - $ - $ -
----------- ----------- -----------
CLASS C
Proceeds from shares issued $ - $ 3,275(b) $ -
Dividends reinvested - - -
Cost of shares redeemed - - -
----------- ----------- -----------
Change in Class C $ - $ 3,275 $ -
----------- ----------- -----------
CLASS R
Proceeds from shares issued $ - $ 3,275(b) $ -
Dividends reinvested - - -
Cost of shares redeemed - - -
----------- ----------- -----------
Change in Class R $ - $ 3,275 $ -
----------- ----------- -----------
CLASS S
Proceeds from shares issued $ 41,930 $ 1,143,819 $ 1,370,049
Proceeds from shares issued in connection with merger - - -
Dividends reinvested - - 192,788
Cost of shares redeemed (1,527) (680,497) (1,360,738)
----------- ----------- -----------
Change in Class S $ 40,403 $ 463,322 $ 202,099
----------- ----------- -----------
Change in net assets from capital transactions $ 40,461 $ 684,426 $ 202,099
=========== =========== ===========
SHARE TRANSACTIONS:
CLASS A
Issued 6 21,145(b) -
Issued in connection with exchange from Class B - - -
Reinvested - - -
Redeemed - - -
----------- ----------- -----------
Change in Class A 6 21,145 -
----------- ----------- -----------
CLASS B
Issued - - -
Reinvested - - -
Redeemed - - -
Cost of shares exchanged to Class A - - -
----------- ----------- -----------
Change in Class B - - -
----------- ----------- -----------
CLASS I
Issued - - -
Reinvested - - -
Redeemed - - -
----------- ----------- -----------
Change in Class I - - -
----------- ----------- -----------
CLASS C
Issued - 316(b) -
Reinvested - - -
Redeemed - - -
----------- ----------- -----------
Change in Class C - 316 -
----------- ----------- -----------
CLASS R
Issued - 316(b) -
Reinvested - - -
Redeemed - - -
----------- ----------- -----------
Change in Class R - 316 -
----------- ----------- -----------
CLASS S
Issued 4,225 115,193 202,662
Issued in connection with merger - - -
Reinvested - - 24,466
Redeemed (152) (64,943) (202,643)
----------- ----------- -----------
Change in Class S 4,073 50,250 24,485
----------- ----------- -----------
Change in shares from capital transactions 4,079 72,027 24,485
=========== =========== ===========
(a) For the period from April 19, 2004 (commencement of operations) to April
30, 2004.
(b) For the period from April 19, 2004 (commencement of operations) to June 30,
2004.
(c) For the period from May 1, 2004 to September 30, 2004.
(d) For the period from July 1, 2004 to September 30, 2004.
(e) For the period from September 30, 2004 (commencement of operations) to
September 30, 2004
78
================================================================================
NOTES TO FINANCIAL STATEMENTS
================================================================================
- --------------------------------------------------------------------------------
7. FEDERAL INCOME TAXES
It is the policy of each Fund to qualify as a regulated investment company by
complying with the provisions available to certain investment companies, as
defined under Subchapter M of the Internal Revenue Code, and to distribute
substantially all of its net investment income and net realized capital gains.
Therefore, no federal tax liability is recorded in the financial statements of
each Fund. Effective for the taxable year ended September 30, 2004, each of the
Funds changed its annual tax period to September 30th. The tax cost of
securities differ from financial reporting cost by the amount of losses
recognized for financial reporting purposes in excess of those allowed to be
recognized for federal income tax purposes. As of September 30, 2004, the tax
cost of securities and the breakdown of unrealized appreciation (depreciation)
for each Fund were as follows:
Net Unrealized
Tax Cost Unrealized Unrealized Appreciation
of Securities Appreciation Depreciation (Depreciation)
------------- ------------ ------------ --------------
Large Cap Equity Fund $189,436,429 22,958,795 $(14,465,003) $8,493,792
Mid Cap Equity Fund 115,697,719 11,491,473 (9,163,632) 2,327,841
Small Cap Equity Fund 14,753,263 4,630,291 (1,091,395) 3,538,896
Enterprise Fund 270,950,082 99,728,899 (21,223,289) 78,505,610
Enterprise Small Cap Fund 52,379,835 26,241,656 (2,247,829) 23,993,827
Value Fund 245,296,698 135,050,648 (1,063,934) 133,986,714
Microcap Value Fund 180,296,909 57,826,727 (16,218,564) 41,608,163
Small Cap International
Fund 4,090,924 1,246,630 (297,271) 949,359
During the period ended September 30, 2004, there were no distributions for the
Funds.
During the fiscal year ended April 30, 2004, the Large Cap Equity, Mid Cap
Equity, and Small Cap Equity Funds had no distributions.
The tax character of distributions during the fiscal year ended June 30, 2004
was as follows:
Distribution Paid From
-----------------------------------------------------------------------------------
Net Total
Investment Net Long Term Total Taxable Tax Exempt Distributions
Income Capital Gains Distributions Distributions Paid
---------- ------------- ------------- ------------- -------------
Enterprise Fund $ 43,832 $ - $ 43,832 $- $ 43,832
Enterprise Small Cap
Fund - - - - -
Value Fund 3,800,757 3,742,736 7,543,493 - 7,543,493
Microcap Value
Fund 397,468 481,025 878,493 - 878,493
Small Cap
International Fund - - - - -
79
================================================================================
NOTES TO FINANCIAL STATEMENTS
================================================================================
As of September 30, 2004 the components of accumulated earnings/(deficit) on a
tax basis was as follows:
Accum. Total
Undist. Undist. Capital and Unrealized Accum.
Ordinary Long-Term Accum. Dist. Other Appreciation/ Earnings/
Income Capital Gains Earnings Payable Losses Depreciation (Deficit)
---------- ------------- ----------- ------- ------------- ------------- --------------
Large Cap Equity
Fund $ - $ - $ - $ - $ (51,463,039) $ 8,493,792 $ (42,969,247)
Mid Cap Equity Fund - 14,589,567 14,589,567 - (3,250,469) 2,327,841 13,666,939
Small Cap Equity
Fund 48,489 1,535,434 1,583,923 - - 3,538,896 5,122,819
Enterprise Fund 1,379,503 13,162,312 14,541,815 - - 78,505,610 93,047,425
Enterprise Small Cap
Fund - 5,723,542 5,723,542 - - 23,993,827 29,717,369
Value Fund 5,410,255 20,677,835 26,088,090 - - 133,986,714 160,074,804
Microcap Value Fund 2,184,130 4,540,289 6,724,419 - - 41,608,163 48,332,582
Small Cap
International Fund - - - - (716,405) 949,977 233,572
As of September 30, 2004, the following Funds had net capital loss
carryforwards, subject to certain limitations on availability, to offset future
net capital gains, if any, as a successor of a merger. To the extent that these
carryovers are used to offset future capital gains, it is probable that the
gains will not be distributed to shareholders:
Capital Loss
Carryforward Expires
-------------- --------
Large Cap Equity Fund $32,987,160 2008
14,580,522 2009
3,895,357 2010
Mid Cap Equity Fund 3,250,469 2012
Small Cap International Fund 459,320 2008
202,539 2009
54,546 2012
80
================================================================================
NOTES TO FINANCIAL STATEMENTS
================================================================================
- --------------------------------------------------------------------------------
8. MARKET TIMING
Tamarack strongly discourages attempts at market timing by Fund shareholders.
Therefore, each Fund charges a redemption fee of 2% of the value of the shares
redeemed or exchanged within 30 days of purchase. When assessed, the redemption
fee is deducted from the redemption proceeds and retained by the Fund, not by
Voyageur. This redemption fee is not charged in cases where the redemption
results from an automatic reinvestment or asset re-allocation not specifically
directed by the shareholder. Tamarack also reserves the right to reject any Fund
purchase order made by persons deemed to be market timers. The Funds' prospectus
contains a more detailed description of Tamarack's policies on market timing
and/or excessive trading. During the period ended September 30, 2004 the
redemption fees collected by each Fund were as follows:
Amount
---------
Large Cap Equity Fund $ 433
Mid Cap Equity Fund 63
Small Cap Equity Fund 163
Enterprise Fund 942
Enterprise Small Cap Fund 1,329
Value Fund 462
Microcap Value Fund 4,071
- --------------------------------------------------------------------------------
9. SOFT DOLLARS
The term soft dollars generally refers to arrangements in which services other
than trade execution are received from a broker-dealer. Federal securities laws
permit a fund advisor to incur commission charges on behalf of a Fund that are
higher than another broker-dealer would have charged if the advisor believes the
charges are reasonable in relation to the brokerage and research services
provided to the Fund. Voyageur and each sub-advisor, as applicable, has a
fiduciary duty to the shareholders of the Funds to seek the best execution price
for all of the Funds' securities transactions. Fund management believes that
using soft dollars to purchase brokerage and research services may, in certain
cases, be in a Fund's best interest. As of September 30, 2004 certain of the
Funds used soft dollars on a limited basis for the purchase of third party
(independent) research. Fund management continues to closely monitor its current
use of soft dollars, in addition to regulatory developments in this area for any
possible impact on Fund policies.
81
================================================================================
SCHEDULE OF INVESTMENTS
================================================================================
Tamarack Large Cap Equity Fund
- --------------------------------------------------------------------------------
SEPTEMBER 30, 2004
MARKET
SHARES VALUE
- ------------ ------------
COMMON STOCKS - 98.7%
CONSUMER DISCRETIONARY - 17.2%
109,290 Carnival Corp. $ 5,168,324
60,280 eBay, Inc. (b) 5,542,143
85,770 Home Depot, Inc. 3,362,184
126,040 International Game 4,531,138
Technology
122,220 Kohl's Corp. (b) 5,889,782
157,910 Staples, Inc. 4,708,876
110,200 Starbucks Corp. (b) 5,009,692
------------
34,212,139
------------
CONSUMER STAPLES - 9.6%
101,850 PepsiCo, Inc. 4,955,003
167,530 SYSCO Corp. 5,012,498
153,360 Walgreen Co. 5,494,888
42,810 Whole Foods Market, Inc. 3,672,670
------------
19,135,059
------------
ENERGY - 2.8%
109,840 Apache Corp. 5,504,082
------------
FINANCIALS - 15.4%
149,110 AFLAC, Inc. 5,846,603
54,880 Ambac Financial Group, Inc. 4,387,656
70,778 American International 4,812,196
Group, Inc.
61,350 Fifth Third Bancorp 3,019,647
205,480 MBNA Corp. 5,178,096
66,680 Northern Trust Corp. 2,720,544
103,360 SLM Corp. 4,609,856
------------
30,574,598
------------
HEALTHCARE - 17.0%
50,240 Amgen, Inc. (b) 2,847,603
76,920 Express Scripts, Inc. (b) 5,025,953
99,070 Johnson & Johnson, Inc. 5,580,613
112,740 Medtronic, Inc. 5,851,207
189,940 Pfizer, Inc. 5,812,164
103,990 Stryker Corp. 4,999,839
45,710 Zimmer Holdings, Inc. (b) 3,612,918
------------
33,730,297
------------
INDUSTRIALS - 10.1%
39,990 Apollo Group, Inc., 2,934,066
Class A (b)
139,530 Danaher Corp. 7,155,099
196,180 General Electric Co. 6,587,724
36,190 United Technologies Corp. 3,379,422
------------
20,056,311
------------
MARKET
SHARES VALUE
- ------------ ------------
INFORMATION TECHNOLOGY - 23.6%
119,080 Adobe Systems, Inc. $ 5,890,888
207,640 Cisco Systems, Inc. (b) 3,758,284
167,250 Dell, Inc. (b) 5,954,100
157,750 First Data Corp. 6,862,125
92,280 Fiserv, Inc. (b) 3,216,881
137,290 Jabil Circuit, Inc. (b) 3,157,670
203,240 Microsoft Corp. 5,619,586
96,240 Paychex, Inc. 2,901,636
175,560 Symantec Corp. (b) 9,634,732
------------
46,995,902
------------
MATERIALS - 3.0%
192,320 Ecolab, Inc. 6,046,541
------------
TOTAL COMMON STOCKS 196,254,929
(Cost $183,103,951) ------------
INVESTMENT COMPANIES - 0.8%
1,675,292 Wells Fargo Prime 1,675,292
Investment Money
Market Fund
TOTAL INVESTMENT COMPANIES 1,675,292
(Cost $1,675,292) ------------
TOTAL INVESTMENTS 197,930,221
(Cost $184,779,243) (a) - 99.5%
Other assets in excess of liabilities - 1,063,705
0.5% ------------
NET ASSETS - 100.0% $198,993,926
============
(a) See notes to financial statements for tax basis unrealized appreciation
(depreciation) of securities.
(b) Non-income producing security.
SEE NOTES TO FINANCIAL STATEMENTS.
82
================================================================================
SCHEDULE OF INVESTMENTS
================================================================================
Tamarack Mid Cap Equity Fund
- --------------------------------------------------------------------------------
SEPTEMBER 30, 2004
MARKET
SHARES VALUE
- -------- ------------
COMMON STOCKS - 98.8%
CONSUMER DISCRETIONARY - 23.9%
100,000 Aeropostale, Inc. (b) $ 2,620,000
26,000 Best Buy Co., Inc. 1,410,240
58,000 Brinker International, 1,806,700
Inc. (b)
63,000 CDW Corp. 3,655,890
46,000 Cheesecake Factory, 1,996,400
Inc. (b)
53,000 Gentex Corp. 1,861,890
59,000 O'Reilly Automotive, 2,259,110
Inc. (b)
134,000 Petsmart, Inc. 3,804,261
86,000 Regis Corp. 3,458,920
135,000 SCP Pool Corp. 3,609,900
52,000 Tractor Supply Co. (b) 1,634,880
------------
28,118,191
------------
CONSUMER STAPLES - 4.9%
41,000 Alberto-Culver Co., 1,782,680
Class B (b)
47,000 Whole Foods Market, Inc. 4,032,130
------------
5,814,810
------------
ENERGY - 3.6%
70,000 Smith International, 4,251,100
Inc. (b) ------------
FINANCIALS - 11.6%
38,000 Commerce Bancorp, Inc. 2,097,600
80,000 East West Bancorp, Inc. 2,687,200
104,000 Investors Financial 4,693,520
Services Corp.
49,500 Legg Mason, Inc. 2,636,865
40,000 Northern Trust Corp. 1,632,000
------------
13,747,185
------------
HEALTHCARE - 19.5%
66,000 Biomet, Inc. 3,094,080
39,000 Express Scripts, Inc. (b) 2,548,260
31,080 Fisher Scientific 1,812,896
International, Inc. (b)
94,000 Health Management 1,920,420
Associates, Inc.
30,000 Invitrogen Corp. (b) 1,649,700
99,000 Omnicare, Inc. 2,807,640
31,000 Patterson Cos., Inc. (b) 2,373,360
30,000 Quest Diagnostics, Inc. 2,646,600
68,000 Varian Medical Systems, 2,350,760
Inc. (b)
88,000 VCA Antech, Inc. (b) 1,815,440
------------
23,019,156
------------
MARKET
SHARES VALUE
- -------- ------------
INDUSTRIALS - 17.6%
84,000 ChoicePoint, Inc. (b) $ 3,582,600
37,000 Danaher Corp. 1,897,360
90,000 Expeditors International 4,653,000
of Washington, Inc.
60,500 Fastenal Co. 3,484,800
50,000 Roper Industries, Inc. 2,873,000
65,000 Stericycle, Inc. (b) 2,983,500
99,000 Tetra Tech, Inc. (b) 1,254,330
------------
20,728,590
------------
INFORMATION TECHNOLOGY - 17.7%
87,000 Cognos, Inc. (b) 3,090,240
39,000 DST Systems, Inc. (b) 1,734,330
40,000 FactSet Research 1,928,000
Systems, Inc.
89,000 Jabil Circuit, Inc. (b) 2,047,000
130,000 Microchip Technology, 3,489,200
Inc.
92,000 Plantronics, Inc. (b) 3,978,080
50,000 Symantec Corp. (b) 2,744,000
151,000 Symbol Technologies, Inc. 1,908,640
------------
20,919,490
------------
TOTAL COMMON STOCKS 116,598,522
(Cost $114,270,681) ------------
INVESTMENT COMPANIES - 1.2%
1,427,038 Wells Fargo Prime 1,427,038
Investment Money ------------
Market Fund
TOTAL INVESTMENT COMPANIES 1,427,038
(Cost $1,427,038) ------------
TOTAL INVESTMENTS 118,025,560
(Cost $115,697,719) (a) - 100.0%
Other assets in excess of liabilities -
0.0% 41,549
------------
NET ASSETS - 100.0% $118,067,109
============
(a) See notes to financial statements for tax basis unrealized appreciation
(depreciation) of securities.
(b) Non-income producing security.
SEE NOTES TO FINANCIAL STATEMENTS.
83
================================================================================
SCHEDULE OF INVESTMENTS
================================================================================
Tamarack Small Cap Equity Fund
- --------------------------------------------------------------------------------
SEPTEMBER 30, 2004
MARKET
SHARES VALUE
- ------------ ----------
COMMON STOCKS - 97.7%
CONSUMER DISCRETIONARY - 11.3%
8,600 Catalina Marketing $198,488
Corp. (b)
9,800 Gentex Corp. 344,274
6,600 P.F. Chang's China Bistro, 320,034
Inc. (b)
15,100 RARE Hospitality 402,415
International, Inc. (b)
12,100 Shuffle Master, Inc. (b) 453,266
13,900 Sonic Corp. (b) 356,257
---------
2,074,734
---------
CONSUMER STAPLES - 2.9%
20,200 United Natural Foods, 537,320
=========
Inc. (b)
ENERGY - 3.8%
6,800 Newfield Exploration 416,432
Co. (b)
9,600 Patina Oil & Gas Corp. 283,872
---------
700,304
---------
FINANCIALS - 10.4%
9,600 HCC Insurance Holdings, 289,440
Inc.
10,700 Hilb, Rogal & Hamilton 387,554
Co.
5,300 Hudson United Bancorp 195,305
10,100 Investment Technology 154,530
Group, Inc. (b)
7,400 Investors Financial 333,962
Services Corp.
13,900 Raymond James 335,268
Financial, Inc.
6,200 SEI Investments Co. 208,816
---------
1,904,875
---------
HEALTHCARE - 22.6%
8,150 Advanced 247,353
Neuromodulation
Systems, Inc. (b)
8,000 ArthroCare Corp. (b) 234,320
5,800 Biosite, Inc. (b) 283,968
9,400 Cooper Cos., Inc. (The) 644,370
14,100 Exactech, Inc. (b) 288,345
20,200 HealthExtras, Inc. (b) 281,588
5,800 IDEXX Laboratories, 294,292
Inc. (b)
23,450 K-V Pharmaceutical Co., 419,755
Class A (b)
10,500 Kyphon Inc. (b) 260,190
6,100 Pharmaceutical Product 219,600
Development, Inc. (b)
MARKET
SHARES VALUE
- ------------ ----------
4,100 Sunrise Senior Living, $ 143,992
Inc. (b)
6,100 SurModics, Inc. (b) 144,875
6,500 Synovis Life Technologies, 62,140
Inc. (b)
5,600 Taro Pharmaceutical 130,928
Industries Ltd. (b)
13,200 Vistacare, Inc. (b) 202,092
8,600 Young Innovations, Inc. 283,800
---------
4,141,608
---------
INDUSTRIALS - 16.0%
12,000 DRS Technologies, 449,280
Inc. (b)
13,200 EGL, Inc. (b) 399,432
25,550 Knight Transportation, 547,281
Inc. (b)
11,000 Mercury Computer 296,120
Systems, Inc. (b)
7,900 Simpson Manufacturing 499,280
Co., Inc.
6,300 Stericycle, Inc. (b) 289,170
7,300 Teleflex, Inc. 310,250
12,100 Tetra Tech, Inc. (b) 153,307
---------
2,944,120
---------
INFORMATION TECHNOLOGY - 24.3%
5,800 Actel Corp. (b) 88,160
6,700 Acxiom Corp. 159,058
8,800 ANSYS, Inc. (b) 437,624
6,700 Autodesk, Inc. 325,821
3,800 Black Box Corp. 140,410
10,100 Cymer, Inc. (b) 289,466
5,500 Global Payments, Inc. 294,525
9,000 Kronos, Inc. (b) 398,610
8,800 Open Text Corp. (b) 151,888
12,600 Photronics, Inc. (b) 209,412
6,700 ScanSource, Inc. (b) 427,460
9,400 Serena Software, Inc. (b) 157,262
12,000 TriQuint Semiconductor, 46,800
Inc. (b)
27,100 Verisity Ltd. (b) 188,345
20,800 Verity, Inc. (b) 267,904
15,300 Wind River Systems, 186,660
Inc. (b)
10,950 Zebra Technologies 668,059
---------
Corp., Class A (b)
4,437,464
---------
MATERIALS - 3.0%
12,200 Spartech Corp. 306,220
5,400 Valspar Corp. 252,072
---------
558,292
---------
84
================================================================================
SCHEDULE OF INVESTMENTS
================================================================================
Tamarack Small Cap Equity Fund (cont.)
- --------------------------------------------------------------------------------
MARKET
SHARES VALUE
- ------------ ----------
RETAIL - 3.4%
4,800 Chico's FAS, Inc. (b) $ 164,160
14,550 Fred's, Inc. 261,318
12,000 Hot Topic, Inc. (b) 204,480
-----------
629,958
-----------
TOTAL COMMON STOCKS 17,928,675
(Cost $14,267,143) -----------
INVESTMENT COMPANIES - 2.0%
363,484 Wells Fargo Prime 363,484
Investment Money
Market Fund
TOTAL INVESTMENT COMPANIES 363,484
(Cost $363,484) -----------
TOTAL INVESTMENTS 18,292,159
(Cost $14,630,627) (a) - 99.7%
Other assets in excess of liabilities - 55,794
0.3% -----------
NET ASSETS - 100.0% $18,347,953
===========
(a) See notes to financial statements for tax basis unrealized appreciation
(depreciation) of securities.
(b) Non-income producing security.
SEE NOTES TO FINANCIAL STATEMENTS.
85
================================================================================
SCHEDULE OF INVESTMENTS
================================================================================
Tamarack Enterprise Fund
- --------------------------------------------------------------------------------
SEPTEMBER 30, 2004
SHARES OR
PRINCIPAL MARKET
AMOUNT VALUE
- ------------ -----------
COMMON STOCKS - 88.83%
CONSUMER DISCRETIONARY - 8.04%
149,600 Advanced Marketing $ 1,614,184
Services, Inc.
31,689 Carmike Cinemas, Inc. 1,115,770
629,800 Casual Male Retail 3,300,152
Group, Inc. (b)
193,188 Checkers Drive-In 2,269,959
Restaurants, Inc. (b)
231,700 Mac-Gray Corp. (b) 1,635,802
615,000 Movado Group, Inc. 10,455,000
1,129,600 Regent Communications, 6,393,536
Inc. (b)
431,400 Rowe Furniture Corp. (b) 2,200,140
109,273 Rush Enterprises, Inc., 1,196,539
Class A (b) -----------
30,181,082
-----------
CONSUMER STAPLES - 1.69%
239,000 United Natural Foods, 6,357,400
Inc. (b) -----------
ENERGY - 6.73%
315,400 Gulf Island Fabrication, 7,033,420
Inc.
161,366 Kaneb Services LLC 5,208,894
672,200 Matrix Service Co. (b) 3,441,664
309,400 Tetra Technologies, 9,606,870
Inc. (b) -----------
25,290,848
-----------
FINANCIALS - 18.55%
276,600 ASTA Funding, Inc. 4,478,154
155,100 Bank of the Ozarks, Inc. 4,611,123
116,500 Boston Private Financial 2,907,840
Holdings, Inc.
118,961 Capital Corp of the West 5,115,323
130,098 Cobiz, Inc. 2,150,520
24,670 Cooperative Bankshares, 594,547
Inc.
151,350 Dearborn Bancorp, 3,950,235
Inc. (b)
266,498 Hanmi Financial Corp. 8,048,239
214,000 Harrington West 3,774,960
Financial Group, Inc.
167,600 LaSalle Hotel Properties 4,625,760
86,415 Mercantile Bank Corp. 3,010,699
100,000 MetroCorp Bancshares, 1,900,000
Inc.
180,300 Northrim Bancorp, Inc. 3,939,555
201,825 One Liberty Properties, 3,642,941
Inc.
429,800 Sanders Morris Harris 5,183,388
Group, Inc.
134,536 Sterling Financial 4,741,049
Corp. (b)
SHARES OR
PRINCIPAL MARKET
AMOUNT VALUE
- ------------ -----------
118,639 Taylor Capital Group, Inc. $ 2,847,336
184,500 Umpqua Holdings Corp. 4,162,320
-----------
69,683,989
-----------
HEALTHCARE - 3.80%
132,900 Landauer, Inc. 6,236,997
485,275 Penwest Pharmaceuticals 5,478,755
Co. (b)
77,650 Young Innovations, Inc. 2,562,450
-----------
14,278,202
-----------
INDUSTRIALS - 16.37%
269,300 Allied Defense Group, 4,992,822
Inc. (b)
83,899 CUNO, Inc. (b) 4,845,167
338,700 EDO Corp. 9,398,925
95,100 ESCO Technologies, 6,443,976
Inc. (b)
321,200 Herley Industries, Inc. (b) 6,003,228
126,400 Lindsay Manufacturing 3,391,312
Co.
526,037 LSI Industries, Inc. 5,491,826
341,063 Modtech Holdings, 2,571,615
Inc. (b)
74,400 Old Dominion Freight 2,143,464
Line, Inc. (b)
107,510 Quixote Corp. 2,072,793
196,700 SCS Transportation, 3,725,498
Inc. (b)
239,800 Terex Corp. (b) 10,407,320
-----------
61,487,946
-----------
INFORMATION TECHNOLOGY - 13.17%
183,800 Comtech 4,980,980
Telecommunications Corp. (b)
367,400 Covansys Corp. (b) 4,239,796
328,200 EMS Technologies, Inc. (b) 5,661,450
470,500 Fargo Electronics, Inc. (b) 4,559,145
633,032 HMS Holdings Corp. (b) 4,114,708
621,300 MSC.Software Corp. (b) 4,995,252
273,300 Spectrum Control, Inc. (b) 1,943,163
756,200 Stellent, Inc. (b) 5,830,302
175,900 Trimble Navigation Ltd. (b) 5,558,440
692,100 Tyler Technologies, Inc. (b) 6,118,164
143,900 Zygo Corp. (b) 1,457,707
-----------
49,459,107
-----------
86
================================================================================
SCHEDULE OF INVESTMENTS
================================================================================
Tamarack Enterprise Fund (cont.)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL MARKET
AMOUNT VALUE
- ------------ -----------
MATERIALS - 10.67%
713,400 Encore Wire Corp. (b) $ 9,445,416
236,200 Ennis Business Forms, 5,059,404
Inc.
719,000 Intertape Polymer Group, 5,493,160
Inc. (b)
572,100 NN, Inc. 6,550,545
367,950 Penford Corp. 6,406,010
518,900 Universal Stainless & 7,134,875
Alloy Products, Inc. (b) ------------
40,089,410
------------
OTHER - 8.26%
383,400 ABM Industries, Inc. 7,725,510
882,400 Integrated Electrical 4,244,344
Services, Inc. (b)
542,490 Keith Cos., Inc. (The) (b) 8,083,101
323,400 Navigant International, 5,281,122
Inc. (b)
543,400 Remedytemp, Inc. (b) 5,673,096
------------
31,007,173
------------
UTILITIES - 1.55%
158,600 Central Vermont Public 3,189,446
Service Corp.
97,000 Unitil Corp. 2,619,485
------------
5,808,931
------------
TOTAL COMMON STOCKS 333,644,088
(Cost $254,818,397) ------------
INVESTMENT COMPANIES - 3.33%
12,511,732 Wells Fargo Prime 12,511,732
Investment Money Market
Fund, Investor Class
TOTAL INVESTMENT COMPANIES 12,511,732
(Cost $12,511,732) ------------
U.S. GOVERNMENT AGENCY OBLIGATIONS - 0.88%
Federal Home Loan Bank
3,300,000 1.51%, 10/01/04 3,299,872
------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS 3,299,872
(Cost $3,300,000)
TOTAL INVESTMENTS 349,455,692
(Cost $270,630,128) (a) - 93.04%
Other assets in excess of liabilities - 26,142,577
6.96% ------------
NET ASSETS - 100.00% $375,598,269
============
(a) See notes to financial statements for unrealized appreciation
(depreciation) of securities.
(b) Non-income producing security.
SEE NOTES TO FINANCIAL STATEMENTS
87
================================================================================
SCHEDULE OF INVESTMENTS
================================================================================
Tamarack Enterprise Small Cap Fund
- --------------------------------------------------------------------------------
SEPTEMBER 30, 2004
MARKET
SHARES VALUE
- ----------- -----------
COMMON STOCKS - 97.53%
CONSUMER DISCRETIONARY - 26.44%
58,050 ADVO, Inc. $ 1,796,066
34,700 Alberto-Culver Co., 1,508,756
Class B
57,275 AnnTaylor Stores 1,340,235
Corp. (b)
47,100 BJ'S Wholesale Club, 1,287,714
Inc. (b)
125,700 Casual Male Retail 658,668
Group, Inc. (b)
49,200 Charming Shoppes, 350,304
Inc. (b)
90,200 Enesco Group, Inc. (b) 617,870
12,000 Harman International 1,293,000
Industries, Inc.
47,200 La-Z-Boy, Inc. 716,496
21,500 Men's Wearhouse, 624,575
Inc. (b)
135,800 Movado Group, Inc. 2,308,599
82,339 Princeton Review, Inc. (b) 617,543
29,600 Red Robin Gourmet 1,292,632
Burgers, Inc. (b)
44,100 Salem Communications 1,116,612
Corp. (b)
37,725 SCP Pool Corp. 1,008,767
70,600 Stein Mart, Inc. (b) 1,074,532
39,400 Steinway Musical 1,071,680
Instruments, Inc. (b)
68,400 Stride Rite Corp. 701,100
33,500 TBC Corp. (b) 748,390
-----------
20,133,539
-----------
CONSUMER STAPLES - 0.96%
43,700 Smart & Final, Inc. (b) 732,412
-----------
ENERGY - 0.67%
85,400 Newpark Resources, Inc. (b) 512,400
-----------
FINANCIALS - 18.44%
14,500 Bank of the Ozarks, Inc. 431,085
15,700 Banner Corp. 461,580
78,908 Cash America 1,930,089
International, Inc.
21,784 Commerce Bancorp, Inc. 1,202,477
27,100 Commercial Capital 614,899
Bancorp, Inc.
23,450 Delphi Financial Group, 941,987
Inc., Class A
20,400 East West Bancorp, Inc. 685,236
30,200 First Niagara Financial 404,076
Group, Inc.
28,000 Oriental Financial Group 757,680
15,600 Platinum Underwriters 456,768
Holdings Ltd.
11,000 Pro-Assurance Corp. (b) 385,220
MARKET
SHARES VALUE
- ----------- -----------
23,000 Scottish Annuity & Life $ 486,910
Holdings Ltd.
15,700 SL Green Realty Corp. 813,417
24,335 Sun Bancorp, Inc. (b) 533,667
29,800 TriCo Bancshares 623,416
22,900 U.S.I. Holdings Corp. (b) 312,585
28,300 UCBH Holdings, Inc. 1,105,681
900 Union Bankshares Corp. (b) 28,044
65,593 W Holding Co., Inc. 1,246,267
18,500 Western Sierra Bancorp (b) 615,865
-----------
14,036,949
-----------
HEALTHCARE - 9.71%
56,700 Inverness Medical 1,179,360
Innovations, Inc. (b)
20,700 Par Pharmaceutical Cos., 743,751
Inc. (b)
96,600 Polymedica Corp. 2,975,280
139,575 PSS World Medical, 1,401,333
Inc. (b)
20,400 Respironics, Inc. (b) 1,090,176
-----------
7,389,900
-----------
INDUSTRIALS - 15.53%
16,300 A.O. Smith Corp. 396,905
22,900 Applied Films Corp. (b) 412,429
20,100 Arkansas Best Corp. 736,062
44,000 Carlisle Co. 2,812,920
37,800 CUNO, Inc. (b) 2,182,950
52,500 Gardner Denver, Inc. (b) 1,447,425
60,300 Paxar Corp. (b) 1,367,604
13,000 Roper Industries, Inc. 746,980
5,600 Tennant Co. 226,968
80,100 Wabtec Corp. 1,497,069
-----------
11,827,312
-----------
INFORMATION TECHNOLOGY - 8.92%
78,000 Aeroflex, Inc. (b) 824,460
30,000 Benchmark Electronics, Inc. (b) 894,000
35,500 Borland Software Corp. (b) 296,425
36,200 C&D Technologies, Inc. 688,524
42,500 Cubic Corp. 973,250
39,100 JDA Software Group, Inc. (b) 423,062
34,000 Mercury Computer 915,280
Systems, Inc. (b)
92,400 Skyworks Solutions, Inc. (b) 877,800
46,200 Technitrol, Inc. (b) 900,900
-----------
6,793,701
-----------
88
================================================================================
SCHEDULE OF INVESTMENTS
================================================================================
Tamarack Enterprise Small Cap Fund (cont.)
- --------------------------------------------------------------------------------
MARKET
SHARES VALUE
- ------------- -----------
MATERIALS - 15.12%
69,300 ElkCorp $ 1,923,768
15,200 Georgia Gulf Corp. 677,768
53,400 Hughes Supply, Inc. 1,605,738
191,100 Interface, Inc. (b) 1,532,622
168,700 Intertape Polymer Group, 1,288,868
Inc. (b)
23,600 Millennium Chemicals, 500,556
Inc. (b)
25,887 Mohawk Industries 2,055,169
Co. (b)
76,700 Spartech Corp. 1,925,170
-----------
11,509,659
-----------
UTILITIES - 1.74%
25,700 Energen Corp. 1,324,835
-----------
TOTAL COMMON STOCKS 74,260,707
(Cost $50,238,648) -----------
INVESTMENT COMPANIES - 2.78%
2,112,955 Wells Fargo Prime 2,112,955
Investment Money Market
Fund, Investor Class
TOTAL INVESTMENT COMPANIES 2,112,955
(Cost $2,112,955) -----------
TOTAL INVESTMENTS 76,373,662
(Cost $52,351,603) (a) -- 100.31%
Liabilities in excess of other assets -- (239,149)
(0.31)% -----------
NET ASSETS -- 100.00% $76,134,513
===========
(a) See notes to financial statements for unrealized appreciation
(depreciation) of securities.
(b) Non-income producing security.
SEE NOTES TO FINANCIAL STATEMENTS.
89
================================================================================
SCHEDULE OF INVESTMENTS
================================================================================
Tamarack Value Fund
- --------------------------------------------------------------------------------
SEPTEMBER 30, 2004
MARKET
SHARES VALUE
- ---------- ------------
COMMON STOCKS - 99.60%
CONSUMER DISCRETIONARY - 14.34%
300,500 Eastman Kodak Co. $ 9,682,110
110,070 Gannett Co., Inc. 9,219,463
517,300 Limited Brands, Inc. 11,530,618
409,200 McDonald's Corp. 11,469,876
14,200 Viacom, Inc., Class A 482,800
190,440 Viacom, Inc., Class B 6,391,166
251,100 Walt Disney Co. (The) 5,662,305
------------
54,438,338
------------
CONSUMER STAPLES - 7.42%
229,000 Diageo PLC ADR 11,548,470
252,700 H.J. Heinz Co. 9,102,254
169,400 Kellogg Co. 7,226,604
81,200 Rite Aid Corp. (b) 285,824
------------
28,163,152
------------
ENERGY - 8.02%
158,032 BP PLC ADR 9,091,581
309,000 Exxon Mobil Corp. 14,933,970
114,900 Occidental Petroleum 6,426,357
Corp. ------------
30,451,908
------------
FINANCIALS - 30.20%
152,300 AFLAC Inc. 5,971,683
127,950 Allstate Corp. 6,140,321
174,900 American Express Co. 9,000,354
157,700 American International 10,722,023
Group, Inc.
197,800 Bank of America Corp. 8,570,674
276,166 Citigroup, Inc. 12,184,443
55,700 Everest Re Group Ltd. 4,140,181
167,800 Freddie Mac 10,947,272
201,710 Morgan Stanley 9,944,303
147,000 Radian Group Inc. 6,795,810
184,500 SLM Corp. 8,228,700
86,800 SouthTrust Corp. 3,616,088
55,750 Student Loan Corp. 7,902,563
176,780 Wells Fargo & Co. 10,541,391
------------
114,705,806
------------
HEALTHCARE - 2.95%
307,180 Pfizer Inc. 9,399,708
69,600 Teva Pharmaceutical 1,806,120
Industries Ltd. ADR ------------
11,205,828
------------
INDUSTRIALS - 11.80%
103,872 Lockheed Martin Corp. 5,793,980
124,100 Parker-Hannifin Corp. 7,304,526
264,400 Rockwell Collins, Inc. 9,819,816
152,000 Tyco International Ltd. 4,660,320
138,000 Union Pacific Corp. 8,086,800
333,940 Waste Management, Inc. 9,129,920
------------
44,795,362
------------
MARKET
SHARES VALUE
- ---------- ------------
INFORMATION TECHNOLOGY - 7.33%
286,900 Apple Computer, Inc. (b) $ 11,117,375
75,000 Automatic Data 3,099,000
Processing, Inc.
52,300 Fiserv, Inc. (b) 1,823,178
87,320 International Business 7,486,817
Machines Corp.
155,900 Microsoft Corp. 4,310,635
------------
27,837,005
------------
MATERIALS - 9.27%
146,800 BOC Group PLC ADR 4,776,872
188,600 Dow Chemical Co. 8,520,948
156,160 PPG Industries, Inc. 9,569,485
185,820 Weyerhaeuser Co. 12,353,313
------------
35,220,618
------------
TELECOMMUNICATION SERVICES - 3.69%
148,100 BCE Inc. 3,206,365
274,300 Verizon Communications 10,801,934
Inc. ------------
14,008,299
------------
UTILITIES - 4.58%
125,800 Entergy Corp. 7,624,738
171,700 Exelon Corp. 6,299,673
70,400 NSTAR 3,456,640
------------
17,381,051
------------
TOTAL COMMON STOCKS 378,207,367
(Cost $243,654,807) ------------
INVESTMENT COMPANIES - 0.28%
1,076,045 Wells Fargo Prime 1,076,045
Investment Money Market
Fund, Investor Class
TOTAL INVESTMENT COMPANIES 1,076,045
(Cost $1,076,045) ------------
TOTAL INVESTMENTS 379,283,412
(Cost $244,730,852) (a) - 99.88%
Other assets in excess of
liabilities -- 0.12% 465,309
------------
NET ASSETS -- 100.00% $379,748,721
============
(a) See notes to financial statements for unrealized appreciation
(depreciation) of securities.
(b) Non-income producing security.
ADR - American Depositary Receipt
SEE NOTES TO FINANCIAL STATEMENTS.
90
================================================================================
SCHEDULE OF INVESTMENTS
================================================================================
Tamarack Microcap Value Fund
- --------------------------------------------------------------------------------
SEPTEMBER 30, 2004
SHARES OR
PRINCIPAL MARKET
AMOUNT VALUE
- -------------- ------------
COMMON STOCKS - 97.55%
CONSUMER DISCRETIONARY - 28.10%
52,000 Action Performance Cos., $ 526,760
Inc.
87,000 Aftermarket Technology 1,094,460
Corp. (b)
2,800 Allen Organ Co., Class B 169,750
29,800 Ambassadors 376,672
International, Inc.
60,000 AMERCO (b) 2,275,199
23,000 America's Car Mart, 776,250
Inc. (b)
21,400 Andersons, Inc. (The) 446,190
60,000 Applica, Inc. (b) 242,400
40,000 Ashworth, Inc. (b) 328,000
25,000 Benihana Inc., Class 334,500
A (b)
69,000 Bluegreen Corp. (b) 767,970
45,000 Bon-Ton Stores, Inc. (The) 548,550
46,000 Books-A-Million, Inc. 368,460
15,127 Bowl America Inc., 216,543
Class A
56,250 Brookstone, Inc. (b) 1,062,563
48,000 BUCA, Inc. (b) 203,520
169,000 Carlisle Holdings Ltd. (b) 1,074,840
61,000 Charlotte Russe Holding, 700,280
Inc. (b)
41,000 Cole National Corp. (b) 1,136,110
39,000 Consolidated Graphics, 1,634,100
Inc. (b)
37,000 Cornell Cos., Inc. (b) 458,800
95,000 CSK Auto Corp. (b) 1,265,400
35,000 CSS Industries, Inc. 1,082,900
32,000 Cutter & Buck, Inc. 352,000
39,400 Dave & Buster's, Inc. (b) 747,812
40,000 Deb Shops, Inc. 976,000
39,000 Department 56, Inc. (b) 635,700
22,000 Dominion Homes, Inc. (b) 524,040
13,500 Duckwall-ALCO Stores, Inc. (b) 208,980
14,860 Edelbrock Corp. 245,190
73,000 Elizabeth Arden, Inc. (b) 1,537,380
16,500 Emak Worldwide, Inc. (b) 160,710
20,800 Exponent, Inc. (b) 573,040
3,656 Federal Screw Works 123,390
68,000 Finish Line, Inc. (The), 2,102,560
Class A
26,000 Finlay Enterprises, Inc. (b) 505,700
47,500 First Cash Financial 951,425
Services, Inc. (b)
48,000 Friedman's, Inc., Class A 98,880
2,250 FRMO Corp. (b) 3,488
36,000 Gaiam, Inc. (b) 214,920
95,000 Goody's Family Clothing, Inc. 799,900
SHARES OR
PRINCIPAL MARKET
AMOUNT VALUE
- -------------- ------------
13,000 Hampshire Group Ltd. (b) $ 410,280
14,000 Hastings Entertainment, 106,400
Inc. (b)
86,000 Isle of Capri Casinos, 1,665,820
Inc. (b)
73,000 JAKKS Pacific, Inc. (b) 1,679,000
79,657 K2, Inc. (b) 1,139,892
12,807 Knape & Vogt 170,973
Manufacturing Co.
11,000 Lakeland Industries, 199,881
Inc. (b)
7,600 Liberty Homes, Inc., 34,200
Class A
31,000 Lifetime Hoan Corp. 460,350
76,000 Lightbridge, Inc. (b) 366,320
37,800 M/I Homes, Inc. 1,604,232
36,000 Mac-Gray Corp. (b) 254,160
43,000 MarineMax, Inc. (b) 968,360
7,500 McRae Industries, Inc., 82,500
Class A
84,000 Medical Staffing Network 515,760
Holdings, Inc. (b)
37,000 Meritage Corp. (b) 2,908,199
37,500 Monro Muffler Brake, 819,375
Inc. (b)
69,400 Movado Group, Inc. 1,179,800
22,000 National R.V. Holdings, 273,460
Inc. (b)
30,000 New Horizons 128,700
Worldwide, Inc. (b)
18,300 Nobel Learning 128,100
Communities, Inc. (b)
10,300 Nobility Homes, Inc. 241,020
10,000 P & F Industries, Inc., 94,000
Class A (b)
60,000 Palm Harbor Homes, 1,011,000
Inc. (b)
73,000 PC Connection, Inc. (b) 501,510
42,000 PDI, Inc. (b) 1,133,580
24,500 Perry Ellis International, 551,005
Inc. (b)
69,000 Pinnacle Entertainment, 952,200
Inc. (b)
131,000 Prime Hospitality 1,594,270
Corp. (b)
47,400 Quaker Fabric Corp. 308,100
37,550 Rex Stores Corp. (b) 527,578
15,100 Rockford Corp. (b) 56,776
11,300 S&K Famous Brands, 177,060
Inc. (b)
36,000 Shoe Carnival, Inc. (b) 424,440
55,000 Source Interlink Cos., 534,600
Inc. (b)
18,000 Sport Chalet, Inc. (b) 247,230
74,000 Sports Authority, Inc. 1,716,800
(The) (b)
91
================================================================================
SCHEDULE OF INVESTMENTS
================================================================================
Tamarack Microcap Value Fund (cont.)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL MARKET
AMOUNT VALUE
- -------------- ------------
121,000 Stein Mart, Inc. (b) $ 1,841,620
26,000 Steinway Musical 707,200
Instruments, Inc. (b)
66,000 Stoneridge, Inc. (b) 930,600
21,000 Superior Uniform Group, 287,700
Inc.
43,000 Syms Corp. (b) 462,680
25,000 Total Entertainment 217,750
Restaurant Corp. (b)
78,000 Velcro Industries NV 897,000
37,000 WestCoast Hospitality 205,350
Corp. (b)
16,700 Weyco Group, Inc. 617,900
35,000 Whitehall Jewellers, 281,050
Inc. (b)
27,000 William Lyon Homes (b) 2,400,299
49,850 Zomax, Inc. (b) 160,019
------------
62,027,431
------------
CONSUMER STAPLES - 4.11%
9,300 Cagle's, Inc., Class A (b) 120,528
33,000 Chalone Wine Group 347,193
Ltd. (The) (b)
13,700 CPAC, Inc. 69,870
132,000 DIMON, Inc. 777,480
4,400 Farmer Brothers Co. 117,612
2,700 Foodarama 101,250
Supermarkets, Inc. (b)
12,000 Fresh Brands, Inc. 93,000
3,200 Genesee Corp., 6,400
Class B (b)
67,000 Ingles Markets, Inc., 808,020
Class A
53,000 M & F Worldwide 689,530
Corp. (b)
20,425 Marsh Supermarkets, 226,718
Inc., Class A
28,125 Marsh Supermarkets, 315,000
Inc., Class B
44,000 MGP Ingredients, Inc. 436,480
35,000 Nash-Finch Co. 1,100,750
37,000 Natures Sunshine 561,290
Products, Inc.
69,000 Omega Protein Corp. (b) 531,300
52,575 Sanderson Farms, Inc. 1,758,633
2,700 Scope Industries 188,325
52,000 Spartan Stores, Inc. (b) 208,520
39,000 Standard Commercial Corp. 614,250
------------
9,072,149
------------
ENERGY - 5.13%
40,000 Callon Petroleum Co. (b) 507,200
43,000 Carrizo Oil & Gas, 411,510
Inc. (b)
50,000 Dril-Quip, Inc. (b) 1,115,000
SHARES OR
PRINCIPAL MARKET
AMOUNT VALUE
- -------------- ------------
30,206 Enbridge Energy $ 1,348,698
Management, LLC (b)
21,000 Giant Industries, Inc. (b) 510,300
34,000 Gulf Island Fabrication, Inc. 758,200
98,000 Harvest Natural 1,626,800
Resources, Inc. (b)
20,000 Lufkin Industries, Inc. 744,400
43,000 NATCO Group, Inc., 371,950
Class A (b)
20,800 Petrofund Energy Trust 262,080
14,600 Petroleum Helicopters, 329,960
Inc. (b)
1 Plug Power, Inc. (b) 6
49,000 Resource America, Inc., 1,155,910
Class A
81,200 RPC, Inc. 1,451,856
6,400 Torch Energy Royalty 41,536
Trust
118,000 TransMontaigne, Inc. (b) 686,760
------------
11,322,166
------------
FINANCIALS - 17.05%
15,000 ABC Bancorp 302,550
101,000 American Equity 958,490
Investment Life Holding
Co. (b)
17,000 American Safety 232,900
Insurance Holdings,
Ltd. (b)
14,500 Bancinsurance Corp. (b) 109,040
14,000 Banner Corp. 411,600
11,300 Brantley Capital Corp. 125,543
31,000 California First National 416,795
Bancorp
21,000 Camco Financial Corp. 312,480
17,000 Capital Crossing Bank (b) 432,480
11,000 Capitol Bancorp Ltd. 322,740
99,000 Ceres Group, Inc. (b) 539,550
25,000 Citizens South Banking 314,025
Corp.
15,452 Cotton States Life 304,404
Insurance Co.
123,000 Credit Acceptance 2,329,619
Corp. (b)
7,000 Donegal Group, Inc. 134,540
37,000 Donegal Group, Inc., 710,400
Class A
33,000 DVI, Inc. (b) 99
70,000 Electro Rent Corp. (b) 772,800
20,000 EMC Insurance Group, Inc. 420,200
32,725 First Albany Cos., Inc. 299,107
40,000 First Financial Corp. 1,256,800
45,000 First Indiana Corp. 904,500
54,000 First Merchants Corp. 1,331,154
92
================================================================================
SCHEDULE OF INVESTMENTS
================================================================================
Tamarack Microcap Value Fund (cont.)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL MARKET
AMOUNT VALUE
- -------------- ------------
14,000 First PacTrust Bancorp, Inc. $ 351,400
38,000 First Place Financial Corp. 760,000
19,000 First State Bancorp 599,070
25,000 FPIC Insurance Group, Inc. (b) 646,250
13,000 Home Federal Bancorp 332,800
86,000 Hub International Ltd. 1,554,880
8,300 Investors Title Co. 249,415
24,000 Jefferson Bancshares, Inc. 315,840
11,000 LSB Corp. 218,900
19,000 Matrix Bancorp, Inc. (b) 241,300
21,000 Maxcor Financial Group, Inc. 187,929
9,000 Mego Financial Corp. (b) 450
5,000 Merchants Group, Inc. 116,250
174,000 MFA Mortgage 1,602,540
Investments, Inc.
37,000 MFC Bancorp Ltd. (b) 678,580
51,800 Midland Co. 1,416,730
3,400 MutualFirst Financial, Inc. 82,297
5,300 National Security Group, 121,900
Inc. (The)
6,000 National Western Life 977,400
Insurance Co., Class A (b)
36,400 Navigators Group, Inc. 1,064,336
(The) (b)
14,000 Onyx Acceptance Corp. 382,200
2,814 Pacific Mercantile 35,091
Bancorp (b)
25,000 Partners Trust Financial 259,000
Group, Inc.
41,750 Penn-America Group, Inc. 568,218
10,000 PennFed Financial 304,100
Services, Inc.
16,000 Peoples Bancorp, Inc. 421,120
65,000 PMA Capital Corp., Class A (b) 490,750
15,000 Provident Financial 435,000
Holdings, Inc.
38,500 PXRE Group Ltd. 901,285
50,000 Sanders Morris Harris 603,000
Group, Inc.
3,900 Simmons First National 99,762
Corp., Class A
36,100 Sizeler Property Investors, Inc. 335,730
36,000 Sound Federal Bancorp, Inc. 526,320
6,911 Southern Community 76,919
Financial Corp.
52,000 Stewart Information 2,048,800
Services Corp.
30,666 Stifel Financial Corp. (b) 601,054
SHARES OR
PRINCIPAL MARKET
AMOUNT VALUE
- -------------- ------------
49,000 SWS Group, Inc. $ 787,920
54,000 TierOne Corp. 1,245,240
5,600 United Capital Corp. (b) 127,960
97,000 United Community 1,102,890
Financial Corp.
30,000 United Fire & Casualty Co. 1,719,900
4,600 Ziegler Cos., Inc. 85,100
------------
37,617,442
------------
HEALTHCARE - 3.01%
31,000 Air Methods Corp. (b) 199,950
17,000 Allou Health Care, Inc., 17
Class A (b)
11,000 American Shared 56,100
Hospital Services
57,000 Capital Senior Living Corp. (b) 273,600
35,000 Cholestech Corp. (b) 236,600
41,000 Compex Technologies, Inc. (b) 221,400
40,000 D & K Healthcare 394,000
Resources, Inc.
42,000 DJ Orthopedics, Inc. (b) 741,300
49,500 Healthcare Services 889,020
Group, Inc.
34,000 HealthTronics Surgical 244,120
Services, Inc. (b)
10,000 IntegraMed America, Inc. (b) 61,000
7,100 Kewaunee Scientific Corp. 63,474
29,000 Matria Healthcare, Inc. (b) 820,990
2,250 MFC Development Corp. (b) 3,600
25,000 MIM Corp. (b) 144,500
60,000 Option Care, Inc. 928,200
20,000 Pediatric Services of 163,400
America, Inc. (b)
48,000 Prime Medical Services, Inc. (b) 346,560
52,000 Res-Care, Inc. (b) 616,200
24,000 Synovis Life Technologies, 229,440
Inc. (b) ------------
6,633,471
------------
INDUSTRIALS - 14.90%
17,000 Allied Defense Group, Inc. (b) 315,180
21,125 Astronics, Corp. (b) 108,160
93,000 Aviall, Inc. (b) 1,897,200
10,500 Badger Meter, Inc. 479,325
34,800 Cascade Corp. 966,048
2,800 Chicago Rivet & Machine Co. 73,304
93
================================================================================
SCHEDULE OF INVESTMENTS
================================================================================
Tamarack Microcap Value Fund (cont.)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL MARKET
AMOUNT VALUE
- -------------- ------------
24,000 CompuDyne Corp. (b) $ 190,320
40,000 CompX International, Inc. (b) 640,000
42,000 Covenant Transport, Inc., 811,440
Class A (b)
29,000 Ducommun, Inc. (b) 648,150
50,400 EDO Corp. 1,398,600
16,600 Gehl Co. (b) 327,850
25,750 Hardinge, Inc. 267,800
70,000 HEICO Corp. 1,237,600
80,900 HEICO Corp., Class A 1,090,532
49,000 Imagistics International, 1,646,400
Inc. (b)
17,000 International Shipholding 242,250
Corp. (b)
31,900 Interpool, Inc. 598,125
19,000 Jinpan International Ltd. 96,900
57,000 Knightsbridge Tankers Ltd. 1,767,000
37,000 Ladish Co., Inc. (b) 338,550
51,750 LSI Industries, Inc. 540,270
58,000 MAIR Holdings, Inc. (b) 475,600
23,000 Maritrans, Inc. 355,120
39,250 Marten Transport Ltd. (b) 685,698
24,816 Met-Pro Corp. 326,330
41,000 Modtech Holdings, Inc. (b) 309,140
27,000 Nordic American Tanker 925,830
Shipping Ltd.
70,875 Old Dominion Freight 2,041,909
Line, Inc. (b)
33,100 P.A.M. Transportation 634,196
Services, Inc. (b)
30,000 Powell Industries, Inc. (b) 505,500
4,600 Quipp, Inc. (b) 63,020
92,000 RailAmerica, Inc. (b) 1,016,600
42,000 Robbins & Myers, Inc. 924,000
51,000 Stelmar Shipping Ltd. 1,928,310
19,000 Sun Hydraulics Corp. 242,820
34,000 Supreme Industries, Inc., 205,360
Class A
103,496 Technical Olympic USA, Inc. 2,922,727
20,200 Transport Corporation of 158,772
America, Inc. (b)
47,000 TRC Cos., Inc. (b) 882,190
48,000 Tsakos Energy Navigation Ltd. 1,687,200
30,000 U.S. Xpress Enterprises, 556,200
Inc., Class A (b)
28,000 USA Truck, Inc. (b) 341,600
------------
32,869,126
------------
SHARES OR
PRINCIPAL MARKET
AMOUNT VALUE
- -------------- ------------
INFORMATION TECHNOLOGY - 8.15%
59,000 Anaren, Inc. (b) $ 794,140
65,000 Audiovox Corp., Class A (b) 1,094,600
72,300 Bell Microproducts, Inc. (b) 561,048
42,200 CalAmp Corp. (b) 300,464
19,000 Cobra Electronics Corp. (b) 136,990
23,000 Communications Systems, Inc. 191,360
143,000 CompuCom Systems, Inc. (b) 654,940
79,000 Computer Network Tech Corp. (b) 321,451
50 Diodes, Inc. (b) 1,288
27,000 ePlus inc. (b) 282,447
112,000 ESS Technology, Inc. (b) 767,200
24,000 GTSI Corp. (b) 210,960
32,000 Inforte Corp. (b) 220,800
35,000 Integral Systems, Inc. 682,850
21,000 Magal Security Systems Ltd. 322,140
65,000 MCSI, Inc. (b) 7
104,000 Methode Electronics, Inc. 1,330,160
48,000 NU Horizons Electronics 304,800
Corp. (b)
67,000 NYFIX, Inc. (b) 407,360
40,000 Pegasystems, Inc. (b) 279,200
75,000 Pericom Semiconductor 724,500
Corp. (b)
62,000 PLATO Learning, Inc. (b) 548,080
37,000 Pomeroy IT Solutions, 468,420
Inc. (b)
16,000 Retalix Ltd. (b) 290,400
41,000 Richardson Electronics Ltd. 394,010
35,000 Rofin-Sinar Technologies, 1,028,300
Inc. (b)
43,000 SBS Technologies, Inc. (b) 524,600
76,000 Semitool, Inc. (b) 576,840
13,800 Sl Industries, Inc. (b) 151,800
41,000 Sypris Solutions, Inc. 559,650
40,000 TALX Corp. 923,600
14,000 TESSCO Technologies, 156,520
Inc. (b)
54,000 Tier Technologies, Inc., 521,100
Class B (b)
120,000 Ulticom, Inc. (b) 1,772,400
97,000 White Electronic Designs 475,300
Corp. (b) ------------
17,979,725
------------
94
================================================================================
SCHEDULE OF INVESTMENTS
================================================================================
Tamarack Microcap Value Fund (cont.)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL MARKET
AMOUNT VALUE
- -------------- ------------
MATERIALS - 10.17%
45,226 Aceto Corp. $ 651,254
85,000 AMCOL International Corp. 1,625,200
7,300 American Biltrite, Inc. 89,498
21,200 American Pacific Corp. 158,343
107,000 Buckeye Technologies, Inc. (b) 1,193,050
39,000 Building Materials 1,073,280
Holding Corp.
45,000 CIRCOR International, Inc. 877,500
9,800 Eastern Co. (The) 159,250
11,315 Ecology and 101,835
Environment, Inc., Class A
47,000 Ennis Business Forms, Inc. 1,006,740
56,000 Gibraltar Steel Corp. 2,024,960
5,150 Graham Corp. 60,616
29,000 Hawkins, Inc. 346,550
21,300 Mestek, Inc (b) 371,685
23,800 Michael Baker Corp. (b) 373,660
42,000 Mobile Mini, Inc. (b) 1,041,600
10,562 MOD-PAC CORP. (b) 119,351
11,000 Noland Co. 472,450
140,400 North American 1,169,532
Palladium Ltd. (b)
18,800 Northwest Pipe Co. (b) 326,180
28,000 Novamerican Steel, 666,960
Inc. (b)
35,000 Octel Corp. 743,400
35,000 Peak International 182,000
Ltd. (b)
49,800 Penn Engineering & 927,276
Manufacturing Corp.
6,400 Penn Engineering & 98,880
Manufacturing Corp.,
Class A
31,700 Roanoke Electric Steel 453,944
Corp.
60,000 RTI International Metals, 1,162,200
Inc. (b)
26,000 Stepan Co. 618,540
12,300 Summa Industries, 135,792
Inc. (b)
11,700 United States Lime & 111,735
Minerals, Inc. (b)
16,000 Universal Stainless & 220,000
Alloy Products, Inc. (b)
100,000 URS Corp. (b) 2,667,999
3,350 VSE Corp. 102,678
3,200 Vulcan International Corp. 142,720
SHARES OR
PRINCIPAL MARKET
AMOUNT VALUE
- -------------- ------------
36,000 Water Pik Technologies, $ 536,400
Inc. (b)
37,000 Wolverine Tube, Inc. (b) 427,350
------------
22,440,408
------------
OTHER - 0.67%
112,000 Integrated Electrical 538,720
Services, Inc. (b)
22,000 Keith Cos., Inc. (The) (b) 327,800
36,900 Navigant International, 602,577
Inc. (b) ------------
1,469,097
------------
UTILITIES - 6.26%
44,000 American States Water Co. 1,095,600
49,554 California Water Service Group 1,455,401
31,900 Cascade Natural Gas Corp. 677,237
15,700 Chesapeake Utilities Corp. 394,070
23,500 Connecticut Water 621,340
Service, Inc.
9,000 Delta Natural Gas Co., Inc. 242,820
71,000 Empire District Electric 1,459,050
Co. (The)
24,000 EnergySouth, Inc. 654,000
12,000 Florida Public Utilities Co. 205,800
14,500 Green Mountain Power 377,725
Corp.
4,900 Maine & Maritimes Corp. 142,100
30,400 Middlesex Water Co. 544,768
43,000 NUI Corp. 573,620
6,500 RGC Resources, Inc. 153,264
82,000 SEMCO Energy, Inc. 450,180
26,400 SJW Corp. 871,728
37,200 South Jersey Industries, 1,776,300
Inc.
41,401 Southwest Water Co. 507,162
41,000 SureWest 1,175,470
Communications
16,476 Unitil Corp. 444,934
------------
13,822,569
------------
TOTAL COMMON STOCKS 215,253,584
(Cost $172,718,947) ------------
U.S. GOVERNMENT AGENCY OBLIGATIONS - 2.27%
5,000,000 Federal Home Loan 5,000,000
Bank, 1.51%, 10/01/04 ------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS 5,000,000
(Cost $5,000,000) ------------
95
================================================================================
SCHEDULE OF INVESTMENTS
================================================================================
Tamarack Microcap Value Fund (cont.)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL MARKET
AMOUNT VALUE
- -------------- ------------
INVESTMENT COMPANIES - 0.75%
9,600 iShares Russell 2000 $ 1,648,224
Value Index ------------
TOTAL INVESTMENT COMPANIES 1,648,224
(Cost $1,261,398) ------------
WARRANTS - 0.00%
HEALTHCARE - 0.00%
2,967 Del Global Technologies 3,264
Corp. (b) ------------
TOTAL WARRANTS (COST $0) 3,264
------------
TOTAL INVESTMENTS 221,905,072
(Cost $178,980,345) (a) - 100.57%
Liabilities in excess of other assets - (0.57)% (1,251,046)
------------
NET ASSETS -- 100.00% $220,654,026
============
(a) See notes to financial statements for unrealized appreciation
(depreciation) of securities.
(b) Non-income producing security.
SEE NOTES TO FINANCIAL STATEMENTS.
96
================================================================================
SCHEDULE OF INVESTMENTS
================================================================================
Tamarack Small Cap International Fund
- --------------------------------------------------------------------------------
SEPTEMBER 30, 2004
MARKET
SHARES VALUE
- ------------ ------------
COMMON STOCKS (94.61%)
AUSTRALIA - 2.28%
CONSUMER DISCRETIONARY - 2.28%
129,800 Ion Ltd. $ 113,765
------------
BELGIUM - 2.69%
INFORMATION TECHNOLOGY - 2.69%
12,100 Melexis NV 134,653
------------
CANADA - 6.13%
INDUSTRIALS - 3.22%
15,400 GSI Lumonics, Inc. (b) 161,084
------------
INFORMATION TECHNOLOGY - 2.91%
48,200 Zarlink Semiconductor, Inc. (b) 145,489
------------
306,573
------------
FRANCE - 10.18%
INDUSTRIALS - 2.61%
19,800 Pinguely-Haulotte 130,581
------------
INFORMATION TECHNOLOGY - 6.09%
17,300 Lectra SA 137,514
2,600 Neopost SA 166,950
------------
304,464
------------
TELECOMMUNICATION SERVICES - 1.48%
50,000 Genesys (b) 73,899
------------
508,944
------------
GERMANY - 12.97%
CONSUMER DISCRETIONARY - 3.17%
8,000 Zapf Creation AG 158,479
------------
INDUSTRIALS - 6.53%
3,100 Pfeiffer Vacuum 120,704
Technology AG
7,500 Techem AG (b) 206,327
------------
327,031
------------
INFORMATION TECHNOLOGY - 3.27%
9,700 Elmos Semiconductor AG 163,363
------------
648,873
------------
HONG KONG - 5.19%
HEALTHCARE - 1.87%
122,400 Global BIO-CHEM 93,393
Technology Group Co. Ltd. ------------
INFORMATION TECHNOLOGY - 3.32%
88,000 Vtech Holdings Ltd. 165,887
------------
259,280
------------
MARKET
SHARES VALUE
- ------------ ------------
IRELAND - 2.61%
CONSUMER DISCRETIONARY - 2.61%
51,500 Independent News & $ 130,485
Media PLC ------------
ITALY - 4.05%
INDUSTRIALS - 4.05%
38,900 Interpump Group SpA 202,435
------------
JAPAN - 9.01%
INDUSTRIALS - 4.03%
13,300 Chiyoda Chemical 100,762
Engineering (b)
3,800 MISUMI Corp. 100,676
------------
201,438
------------
INFORMATION TECHNOLOGY - 2.02%
36 Faith, Inc. 100,930
------------
MATERIALS - 2.96%
4,000 Tarmon Co. Ltd (b) 148,074
------------
450,442
------------
LUXEMBOURG - 3.37%
CONSUMER DISCRETIONARY - 3.37%
5,000 SBS Broadcasting SA (b) 168,300
------------
NETHERLANDS - 5.84%
CONSUMER DISCRETIONARY - 5.84%
3,120 Hunter Douglas NV 143,338
11,900 Trader Classified Media 148,389
NV, Class A (b) ------------
291,727
------------
NEW ZEALAND - 3.41%
HEALTHCARE - 3.41%
16,600 Fisher & Paykel 170,531
Healthcare ------------
NORWAY - 3.10%
ENERGY - 3.10%
6,100 Prosafe ASA 154,958
------------
SWEDEN - 10.68%
CONSUMER DISCRETIONARY - 2.68%
14,414 Eniro AB 124,733
806 Eniro AB Redemption 9,466
Shares (b) ------------
134,199
------------
HEALTHCARE - 5.19%
6,365 Elekta AB, Class B (b) 154,749
8,600 Getinge Industrier AB, 104,544
Class B ------------
259,293
------------
97
================================================================================
SCHEDULE OF INVESTMENTS
================================================================================
Tamarack Small Cap International Fund (cont.)
- --------------------------------------------------------------------------------
MARKET
SHARES VALUE
- ------------ ------------
INDUSTRIALS - 2.81%
5,680 Munters AB $ 140,436
------------
533,928
------------
SWITZERLAND - 2.28%
INFORMATION TECHNOLOGY - 2.28%
5,030 SEZ Holding AG (b) 113,998
------------
UNITED KINGDOM - 10.82%
CONSUMER DISCRETIONARY - 2.13%
25,000 HIT Entertainment PLC 106,311
------------
CONSUMER SERVICES - 3.46%
25,670 T&F Informa Group 172,798
PLC (b) ------------
CONSUMER STAPLES - 3.25%
60,800 McBride PLC 162,555
------------
MATERIALS - 1.98%
17,450 Victrex PLC 99,151
------------
540,815
------------
TOTAL COMMON STOCKS 4,729,707
(Cost $3,780,721) ------------
INVESTMENT COMPANIES (6.21%)
220,930 Wells Fargo Government 220,929
Institutional Money Market
Fund, Investor Class
89,274 Wells Fargo Prime 89,274
Investment Money Market
Fund, Investor Class
310,203
------------
TOTAL INVESTMENT COMPANIES 310,203
(Cost $310,203) ------------
MARKET
SHARES VALUE
- ------------ ------------
WARRANT - 0.01%
HONG KONG - 0.01%
HEALTHCARE - 0.01%
5,600 Global BIO-CHEM $ 373
Technologies Co. Ltd. (b) ------------
TOTAL WARRANT 373
(Cost $0) ------------
TOTAL INVESTMENTS 5,040,283
(Cost $4,090,924) (a) -- 100.83%
Liabilities in excess of other assets -- (41,455)
(0.83)% ------------
NET ASSETS -- 100.00% $ 4,998,828
============
(a) See notes to financial statements for unrealized appreciation
(depreciation) of securities.
(b) Non-income producing security.
SEE NOTES TO FINANCIAL STATEMENTS.
98
================================================================================
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
================================================================================
- --------------------------------------------------------------------------------
To the Board of Trustees and Shareholders of Tamarack Funds Trust
We have audited the accompanying statements of assets and liabilities, including
the schedules of investments, of the portfolios of Tamarack Funds Trust, which
include Large Cap Equity Fund, Mid Cap Equity Fund, Small Cap Equity Fund,
Enterprise Fund, Enterprise Small Cap Fund, Value Fund, Microcap Value Fund and
Small Cap International Fund (collectively, the "Funds") as of September 30,
2004. We have audited the related statements of operations, statements of
changes in net assets and the financial highlights for the period from May 1,
2004 through September 30, 2004 and for the year ended April 30, 2004 for Large
Cap Equity Fund, Mid Cap Equity Fund and Small Cap Equity Fund. We have audited
the related statements of operations, statements of changes in net assets and
the financial highlights for the period from July 1, 2004 through September 30,
2004 and for the year ended June 30, 2004 for Enterprise Fund, Enterprise Small
Cap Fund, Value Fund, Microcap Value Fund and Small Cap International Fund.
These financial statements and financial highlights are the responsibility of
the Funds' management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits. The
statements of changes in net assets and the financial highlights of Large Cap
Equity Fund, Mid Cap Equity Fund and Small Cap Equity Fund for periods prior to
April 30, 2004, were audited by other auditors whose report, dated June 17,
2003, expressed an unqualified opinion. The statements of changes in net assets
and the financial highlights of Enterprise Fund, Enterprise Small Cap Fund,
Value Fund, Microcap Value Fund and Small Cap International Fund for periods
prior to June 30, 2004, were audited by other auditors whose reports, dated
August 22, 2003, expressed unqualified opinions.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures included confirmation of
securities owned as of September 30, 2004, by correspondence with the Funds'
custodian and brokers; where replies were not received from brokers, we
performed other auditing procedures. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of each
of the Funds as of September 30, 2004, the results of operations, the changes in
net assets, and the financial highlights for the respective stated periods in
conformity with accounting principles generally accepted in the United States of
America.
DELOITTE & TOUCHE LLP
Chicago, Illinois
November 19, 2004
99
================================================================================
MANAGEMENT
================================================================================
Independent Trustees(1)
- --------------------------------------------------------------------------------
T. GERON BELL (63)
POSITION HELD WITH FUND: Trustee; Since January, 2004
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: President of Twins Sports, Inc.
(parent company of the Minnesota Twins and Victory Sports) (2002-present);
prior thereto President of the Minnesota Twins Baseball Club Incorporated
(1987-present); Director, Great Hall Investment Funds, Inc. (1993-2004);
Trustee, J&B Funds (2003-2004); Director, Babson Funds (2003-2004).
NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN: 17
- --------------------------------------------------------------------------------
LUCY HANCOCK BODE (53)
POSITION HELD WITH FUND: Trustee; Since January, 2004
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Healthcare consultant; Director,
RBC Funds (1994-2004).
NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN: 17
- --------------------------------------------------------------------------------
LESLIE H. GARNER JR. (54)
POSITION HELD WITH FUND: Trustee; Since January, 2004
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: President, Cornell College;
Director, RBC Funds (1994-2004).
NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN: 17
- --------------------------------------------------------------------------------
RONALD JAMES (53)
POSITION HELD WITH FUND: Trustee; Since January, 2004
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: President and Chief Executive
Officer, Center for Ethical Business Cultures (2000-present); Director, Great
Hall Investment Funds, Inc. (1993-2004); Trustee, J&B Funds (2003-2004);
Director, Babson Funds (2003-2004).
NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN: 17
- --------------------------------------------------------------------------------
JOHN A. MACDONALD (55)
POSITION HELD WITH FUND: Trustee; Since January, 2004
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Chief Investment Officer, Hall
Family Foundation; Trustee, J&B Funds (2001-2004).
NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN: 17
- --------------------------------------------------------------------------------
H. DAVID RYBOLT (62)
POSITION HELD WITH FUND: Trustee; Since January, 2004
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Consultant, HDR Associates
(management consulting); Director, Babson Funds (1992-2004).
NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN: 17
- --------------------------------------------------------------------------------
(1) Unless otherwise specified, the address of each trustee/officer is 100
South Fifth Street, Suite 2300, Minneapolis, Minnesota 55402.
100
================================================================================
MANAGEMENT
================================================================================
Independent Trustees(1)
- --------------------------------------------------------------------------------
JAMES R. SEWARD (51)
POSITION HELD WITH FUND: Trustee; Since January, 2004
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Private investor (2000-present);
Trustee, J&B Funds (2001-2004); Financial Consultant, Seward & Company, LLC
(1998-2000); CFA.
NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN: 17
- --------------------------------------------------------------------------------
JAY H. WEIN (72)
POSITION HELD WITH FUND: Trustee; Since January, 2004
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Private investor (1989-present);
Director, Great Hall Investment Funds, Inc. (1993-2004); Trustee, J&B Funds
(2003-2004); Director, Babson Funds (2003-2004).
NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN: 17
- --------------------------------------------------------------------------------
Interested Trustees(1)
- --------------------------------------------------------------------------------
MICHAEL T. LEE (41)
POSITION HELD WITH FUND: Trustee; Since January, 2004
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Chief Operating Officer and Senior
Vice President, Voyageur Asset Management Inc. (2003-present); Senior Portfolio
Manager, Voyageur Asset Management Inc. (2000-present); Vice President, Senior
Research Analyst and Equity Portfolio Manager, Voyageur Asset Management Inc.
(1999-2003).
NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN: 17
- --------------------------------------------------------------------------------
Executive Officers(1)
- --------------------------------------------------------------------------------
JENNIFER D. LAMMERS (43)
POSITION HELD WITH FUND: President and Chief Executive Officer; Since January,
2004
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Managing Director, Voyageur Asset
Management (2000-present); Mutual Fund Services Director, Voyageur Asset
Management (2003-present); Chief Financial Officer, Great Hall Investment Funds,
Inc. (2001-2003); Compliance Officer, Great Hall Investment Funds, Inc.
(2000-2001); Director of Finance, Voyageur Asset Management (2000-2003); Vice
President and Manager, Financial Reporting, RBC Dain Rauscher (1998-2000);
President and Chief Executive Officer (2003-2004)(2).
CHRISTOPHER J. TOMAS (34)
POSITION HELD WITH FUND: Treasurer, Chief Financial Officer, and Principal
Accounting Officer; Since January, 2004
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Vice President and Finance Manager,
RBC Dain Rauscher (2001-present); Compliance Officer, Great Hall Investment
Funds, Inc. (2001-2003); Senior Financial Analyst, RBC Dain Rauscher
(1999-2001); Financial Analyst, RBC Dain Rauscher (1997-1999); Treasurer, Chief
Financial Officer and Principal Accounting Officer (2003-2004)(2).
- --------------------------------------------------------------------------------
(1) Unless otherwise specified, the address of each trustee/officer is 100
South Fifth Street, Suite 2300, Minneapolis, Minnesota 55402.
(2) Great Hall Investment Funds, Inc., J&B Funds, Babson Enterprise Fund, Inc.,
Babson Enterprise Fund II, Inc., Babson-Stewart Ivory International Fund,
Inc., Babson Value Fund, Inc., David L. Babson Growth Fund, Inc., D.L.
Babson Bond Trust, D.L. Babson Money Market Fund, Inc., D.L. Babson
Tax-Free Income Fund, Inc., Shadow Stock Fund, Inc., and Investors Mark
Series Fund, Inc.
101
================================================================================
MANAGEMENT
================================================================================
Executive Officers(1)
- --------------------------------------------------------------------------------
MARTIN A. CRAMER (54)
POSITION HELD WITH FUND: Vice President, Assistant Secretary, Chief Compliance
Officer, and AML Compliance Officer; Since January, 2004
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Vice President and Mutual Fund
Administration Manager, Voyageur Asset Management (2003-present); Legal and
Regulatory Affairs Vice President, Compliance Officer and Secretary, J&B
(mutual fund management and distribution company) (1993-2003); Vice President,
Assistant Secretary, Compliance Officer and AML Compliance Officer
(2003-2004)(2), and formerly, Vice President, Compliance Officer and Secretary,
Buffalo Fund Complex (1994-2003) and Secretary, Gold Bank Funds(3) (2001-2003).
- --------------------------------------------------------------------------------
LAURA M. MORET (50)
POSITION HELD WITH FUND: Secretary and Chief Legal Officer; Since January, 2004
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Vice President and Senior
Associate Counsel, RBC Dain Rauscher (2002-present); Vice President and Group
Counsel, American Express Financial Advisors (1995-2002); Secretary
(2003-2004)(2).
- --------------------------------------------------------------------------------
GORDON TELFER (38)
POSITION HELD WITH FUND: Portfolio Strategist; Since March, 2004
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Vice President and Portfolio
Manager, Voyageur Asset Management (2003-present); Senior Portfolio Manager,
Alliance Capital Management (2000-2003); Senior Vice President, Global
Strategist, Scudder Kemper Investments (1997-2000).
- --------------------------------------------------------------------------------
NANCY M. SCINTO (45)
POSITION HELD WITH FUND: Chief Investment Officer, Equity Products; Since
January, 2004
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Managing Director and Director of
Research, Voyageur Asset Management.
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(1) Unless otherwise specified, the address of each trustee/officer is 100
South Fifth Street, Suite 2300, Minneapolis, Minnesota 55402.
(2) Great Hall Investment Funds, Inc., J&B Funds, Babson Enterprise Fund, Inc.,
Babson Enterprise Fund II, Inc., Babson-Stewart Ivory International Fund,
Inc., Babson Value Fund, Inc., David L. Babson Growth Fund, Inc., D.L.
Babson Bond Trust, D.L. Babson Money Market Fund, Inc., D.L. Babson
Tax-Free Income Fund, Inc., Shadow Stock Fund, Inc., and Investors Mark
Series Fund, Inc.
(3) The Buffalo Fund Complex consists of Buffalo Balanced Fund, Inc., Buffalo
Large Cap Fund, Inc., Buffalo High Yield Fund, Inc., Buffalo Small Cap
Fund, Inc., Buffalo USA Global Fund, Inc., and the Buffalo Funds, which is
a series fund consisting of Buffalo Science & Technology Fund and Buffalo
Mid Cap Fund. Gold Bank Funds is a series fund consisting of Gold Bank
Equity and Gold Bank Money Market Fund.
102
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SHARE CLASS INFORMATION
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The Tamarack Equity Funds offer five share classes, four of which are currently
authorized for sale to new investors. These four share classes are the A, C, R
and I classes.
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A CLASS
A Class shares are available for purchase primarily through investment advisors,
broker- dealers, banks and other financial services intermediaries. A Class
shares of the Tamarack Equity Funds are currently subject to a maximum up-front
sales charge of 5.75% and a 1.00% contingent deferred sales charge ("CDSC") for
redemption within 12 months of a $1 million or greater purchase. A Class shares
currently include a 0.25% (25 bps) annual 12b-1 service and distribution fee.
(The 12b-1 Plan allows for 50 bps, but the Funds' distributor is currently
voluntarily waiving 25 bps.) A Class shares have a higher up front sales charge
(load) than C Class shares, but a lower annual expense ratio.
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C CLASS
C Class shares are also available for purchase primarily through investment
advisors, broker-dealers, banks and other financial services intermediaries. C
Class shares redeemed within 12 months of purchase are subject to a contingent
deferred sales charge (CDSC) of 1.00%. (No CDSC will be charged on shares
acquired through reinvestment of dividends or capital gains.) C Class shares
expenses include a 1.00% (100 bps) annual 12b-1 service and distribution fee. C
Class shares have a lower up-front sales charge (load) than A Class shares, but
due to the higher service and distribution fee, have higher annual expenses than
A Class shares.
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R CLASS
R Class shares are available for purchase through employer-sponsored or 401(k)
retirement plans for which omnibus or program-level accounts are held on the
books of the Funds. R Class shares have no upfront sales charge (load), but are
subject to a 0.50% (50 bps) 12b-1 service and distribution fee. R Class shares
currently have annual expenses between A Class and C Class share expenses.
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S CLASS
S Class shares are currently closed to new investors. This share class does not
have an upfront sales charge (load) or a 12b-1 service and distribution fee.
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I CLASS
I Class shares are available in the Tamarack Enterprise, Enterprise Small Cap,
Large Cap, Mid Cap and Small Cap Funds. This share class does not have an
upfront sales charge (load) or a 12b-1 service and distribution fee.
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For an investor purchasing Tamarack Funds shares through a financial services
intermediary, the question as to which share class, A or C, is the best choice
is dependent on many factors, including the amount to be invested and the length
of time an investor anticipates holding the shares. An investor should consult
with his or her financial advisor about his or her personal financial situation
to determine which share class is the best choice for his or her individual
situation.
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SUPPLEMENTAL INFORMATION
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As a shareholder of the Tamarack Funds, you incur two types of costs: (1)
transaction costs, including any applicable sales charges (loads) on purchases,
reinvested dividends, or other distributions; redemption fees; and exchange
fees; (2) ongoing costs, including management fees; any applicable distribution
12b-1 fees; and other Fund expenses. This example is intended to help you
understand your ongoing costs (in dollars) of investing in the Tamarack Funds
and to compare these costs with the ongoing costs of investing in other mutual
funds.
The example is based on an investment of $1,000 invested at the beginning of
the period and held for the entire period from April 1, 2004 through September
30, 2004.
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ACTUAL EXPENSES
The table below provides information about actual account values and actual
expenses. You may use the information below, together with the amount you
invested, to estimate the expenses that you paid over the period. Simply divide
your account value by $1,000 (for example, an $8,600 account value divided by
$1,000 = 8.6), then multiply the result by the number in the table under the
heading entitled "Expenses Paid During Period" to estimate the expenses you
paid on your account during this period. Please note that the expenses shown in
the table are meant to highlight your ongoing costs only and do not reflect any
transactional costs, such as sales charges (loads), redemption fees, or
exchange fees. If these transactional costs were included, your costs would
have been higher.
EXPENSE RATIO
BEGINNING ENDING EXPENSE PAID DURING PERIOD
ACCOUNT VALUE ACCOUNT VALUE DURING PERIOD* 4/1/04 --
4/1/04 9/30/04 4/1/04 -- 9/30/04 9/30/04 (E)
--------------- --------------- ------------------- --------------
Large Cap
Equity Fund Class A $ 1,000.00 $ 977.30 $ 5.64 1.14%
Class I 1,000.00 977.50 4.45 0.90%
Class C (a) 1,000.00 973.90 9.13 1.85%
Class R (a) 1,000.00 976.10 6.82 1.38%
Class S (b) 1,000.00 977.50 4.40 0.89%
Mid Cap
Equity Fund Class A 1,000.00 928.60 5.98 1.24%
Class I 1,000.00 929.20 4.73 0.98%
Class C (a) 1,000.00 925.00 9.72 2.02%
Class R (a) 1,000.00 926.80 7.32 1.52%
Class S (b) 1,000.00 929.20 4.97 1.03%
Small Cap
Equity Fund Class A 1,000.00 1,024.50 8.65 1.71%
Class I 1,000.00 1,025.60 7.39 1.46%
Class C (a) 1,000.00 1,021.20 12.38 2.45%
Class R (a) 1,000.00 1,022.90 9.86 1.95%
Class S (b) 1,000.00 1,025.60 7.34 1.45%
Enterprise
Fund Class A (c) 1,000.00 985.00 6.60 1.33%
Class I (d) 1,000.00 986.80 10.33 2.08%
Class C (c) 1,000.00 981.70 6.19 1.25%
Class R (c) 1,000.00 983.60 7.74 1.56%
104
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SUPPLEMENTAL INFORMATION
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EXPENSE RATIO
BEGINNING ENDING EXPENSE PAID DURING PERIOD
ACCOUNT VALUE ACCOUNT VALUE DURING PERIOD* 4/1/04 --
4/1/04 9/30/04 4/1/04 -- 9/30/04 9/30/04 (E)
--------------- --------------- ------------------- --------------
Class S 1,000.00 986.80 5.36 1.08%
Enterprise
Small Cap
Fund Class A (c) 1,000.00 1,012.60 7.80 1.55%
Class C (c) 1,000.00 1,008.50 11.55 2.30%
Class R (c) 1,000.00 1,010.90 8.95 1.78%
Class S 1,000.00 1,013.70 6.54 1.30%
Value Fund Class A (c) 1,000.00 1,030.30 6.14 1.21%
Class C (c) 1,000.00 1,026.30 9.93 1.96%
Class R (c) 1,000.00 1,028.80 7.30 1.44%
Class S 1,000.00 1,031.40 4.88 0.96%
Microcap
Value Fund Class A (c) 1,000.00 989.90 6.37 1.28%
Class C (c) 1,000.00 986.30 10.08 2.03%
Class R (c) 1,000.00 988.70 7.61 1.53%
Class S 1,000.00 991.60 5.13 1.03%
Small Cap
International
Fund Class A (c) 1,000.00 948.60 9.01 1.85%
Class C (c) 1,000.00 945.30 12.45 2.56%
Class R (c) 1,000.00 947.50 10.08 2.07%
Class S 1,000.00 949.70 7.80 1.60%
(a) The inception date for Class C and Class R shares of the Fund is April 19,
2004. All performance shown for each such class of shares prior to its
inception date is based on the performance of the Class A Shares of the
Fund, adjusted to reflect the fees and expenses of Class C and Class R
shares, as applicable (and where applicable, the maximum sales charges of
the Class C shares).
(b) The inception date for Class S of the Fund is April 19, 2004. All
performance shown for each such class of shares prior to its inception date
is based on the performance of the Class I Shares of the Fund, adjusted to
reflect the fees and expenses of Class I.
(c) The inception date for Class A, Class C and Class R shares of the Fund is
April 19, 2004. All performance shown for each such class of shares prior
to its inception date is based on the performance of the Class S Shares of
the Fund, adjusted to reflect the fees and expenses of Class A, Class C and
Class R shares, as applicable (and where applicable, the maximum sales
charges of the Class A and Class C shares).
(d) The inception date for Class I shares of the Fund is September 30, 2004.
All performance shown for each such class of shares prior to its inception
date is based on the performance of the Class S Shares of the Fund,
adjusted to reflect the fees and expenses of Class I shares, as applicable.
(e) Annualized.
*Expenses are equal to the average account value times the Fund's annualized
expense ratio multiplied by the number of days in the 6-month period ending
September 30, 2004 divided by the number of days in the 12-month period ending
September 30, 2004.
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SUPPLEMENTAL INFORMATION
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HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The table below provides information about hypothetical account values and
hypothetical expenses based on each Tamarack Funds' actual expense ratio and an
assumed rate of return of 5% per year before expenses, which is not the Fund's
actual return. The hypothetical account values and expenses may not be used to
estimate the actual ending account balance or expenses you paid for the period.
You may use this information to compare this 5% hypothetical example with the
5% hypothetical examples that appear in the shareholder reports of other mutual
funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads), redemption fees, or exchange fees. Therefore, the table is
useful in comparing ongoing costs only, and will not help you determine the
relative total costs of owning different funds. In addition, if these
transactional costs were included, your costs would have been higher.
EXPENSE RATIO
BEGINNING ENDING EXPENSE PAID DURING PERIOD
ACCOUNT VALUE ACCOUNT VALUE DURING PERIOD* 4/1/04 --
4/1/04 9/30/04 4/1/04 -- 9/30/04 9/30/04 (E)
--------------- --------------- ------------------- --------------
Large Cap
Equity Fund Class A $ 1,000.00 $ 1,019.30 $ 5.76 1.14%
Class I 1,000.00 1,020.50 4.55 0.90%
Class C (a) 1,000.00 1,015.75 9.32 1.85%
Class R (a) 1,000.00 1,018.10 6.96 1.38%
Class S (b) 1,000.00 1,020.55 4.50 0.89%
Mid Cap
Equity Fund Class A 1,000.00 1,018.80 6.26 1.24%
Class I 1,000.00 1,020.10 4.95 0.98%
Class C (a) 1,000.00 1,014.90 10.18 2.02%
Class R (a) 1,000.00 1,017.40 7.67 1.52%
Class S (b) 1,000.00 1,019.85 5.20 1.03%
Small Cap
Equity Fund Class A 1,000.00 1,016.45 8.62 1.71%
Class I 1,000.00 1,017.70 7.36 1.46%
Class C (a) 1,000.00 1,012.75 12.33 2.45%
Class R (a) 1,000.00 1,015.25 9.82 1.95%
Class S (b) 1,000.00 1,017.75 7.31 1.45%
Enterprise
Fund Class A (c) 1,000.00 1,018.35 6.71 1.33%
Class I (d) 1,000.00 1,014.60 10.48 2.08%
Class C (c) 1,000.00 1,018.75 6.31 1.25%
Class R (c) 1,000.00 1,017.20 7.87 1.56%
Class S 1,000.00 1,018.75 6.31 1.25%
Enterprise
Small Cap
Fund Class A (c) 1,000.00 1,017.25 7.82 1.55%
Class C (c) 1,000.00 1,013.50 11.58 2.30%
Class R (c) 1,000.00 1,016.10 8.97 1.78%
Class S 1,000.00 1,018.50 6.56 1.30%
106
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SUPPLEMENTAL INFORMATION
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EXPENSE RATIO
BEGINNING ENDING EXPENSE PAID DURING PERIOD
ACCOUNT VALUE ACCOUNT VALUE DURING PERIOD* 4/1/04 --
4/1/04 9/30/04 4/1/04 -- 9/30/04 9/30/04 (E)
--------------- --------------- ------------------- --------------
Value Fund Class A (c) 1,000.00 1,018.95 6.11 1.21%
Class C (c) 1,000.00 1,015.20 9.87 1.96%
Class R (c) 1,000.00 1,017.80 7.26 1.44%
Class S 1,000.00 1,020.20 4.85 0.96%
Microcap
Value Fund Class A (c) 1,000.00 1,018.60 6.46 1.28%
Class C (c) 1,000.00 1,014.85 10.23 2.03%
Class R (c) 1,000.00 1,017.35 7.72 1.53%
Class S 1,000.00 1,019.85 5.20 1.03%
Small Cap
International
Fund Class A (c) 1,000.00 1,015.75 9.32 1.85%
Class C (c) 1,000.00 1,012.20 12.88 2.56%
Class R (c) 1,000.00 1,014.65 10.43 2.07%
Class S 1,000.00 1,017.00 8.07 1.60%
(a) The inception date for Class C and Class R shares of the Fund is April 19,
2004. All performance shown for each such class of shares prior to its
inception date is based on the performance of the Class A Shares of the
Fund, adjusted to reflect the fees and expenses of Class C and Class R
shares, as applicable (and where applicable, the maximum sales charges of
the Class C shares).
(b) The inception date for Class S of the Fund is April 19, 2004. All
performance shown for each such class of shares prior to its inception date
is based on the performance of the Class I Shares of the Fund, adjusted to
reflect the fees and expenses of Class I.
(c) The inception date for Class A, Class C and Class R shares of the Fund is
April 19, 2004. All performance shown for each such class of shares prior
to its inception date is based on the performance of the Class S Shares of
the Fund, adjusted to reflect the fees and expenses of Class A, Class C and
Class R shares, as applicable (and where applicable, the maximum sales
charges of the Class A and Class C shares).
(d) The inception date for Class I shares of the Fund is September 30, 2004.
All performance shown for each such class of shares prior to its inception
date is based on the performance of the Class S Shares of the Fund,
adjusted to reflect the fees and expenses of Class I shares, as applicable.
(e) Annualized.
*Expenses are equal to the average account value times the Fund's annualized
expense ratio multiplied by the number of days in the 6-month period ending
September 30, 2004 divided by the number of days in the 12-month period ending
September 30, 2004.
107
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108
[PHOTO]
Tamarack Funds PRSRT STD
P.O. Box 219757 U.S. POSTAGE
Kansas City, MO 64121-9757 PAID
PERMIT NO. 2891
KANSAS CITY MO.
800-422-2766
www.TamarackFunds.com
TF AR 9/04 TAMARACK DISTRIBUTORS INC.
532145 (9/04)
TAMARACK FUNDS
Annual Report September 30, 2004
[PHOTO]
PRIME MONEY MARKET FUND
U.S. GOVERNMENT MONEY MARKET FUND
TAX-FREE MONEY MARKET FUND
INSTITUTIONAL PRIME MONEY MARKET FUND
INSTITUTIONAL TAX-FREE MONEY MARKET FUND
[TAMARACK FUNDS LOGO]
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Tamarack Funds
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ABOUT YOUR ANNUAL REPORT
This annual report includes detailed information regarding your Fund's
performance. This report is provided to help answer your questions as a
shareholder. Among these questions may be: What are the annual expenses of my
Fund? What are the significant accounting policies and procedures followed by
my Fund?
We hope the financial information presented will help you evaluate your
investment in the Tamarack Funds. We also encourage you to read your Fund's
prospectus for further detail as to your Fund's investment policies and risk
profile. Tamarack Funds prospectuses and additional performance information are
available on our website at www.tamarackfunds.com.
A description of the policies and procedures that your Fund uses to determine
how to vote proxies relating to portfolio securities is available (i) without
charge, upon request, by calling 1-800-422-2766; (ii) on the Fund's website at
www.tamarackfunds.com; and (iii) on the Commission's website at
http://www.sec.gov.
Information regarding how your Fund voted proxies relating to portfolio
securities during the most recent 12-month period ended June 30 is available
(i) on the Fund's website at www.tamarackfunds.com; and (ii) on the Securities
and Exchange Commission's ("Commission") website at http://www.sec.gov.
A schedule of each Fund's portfolio holdings will be filed with the Commission
for the first and third quarters of each fiscal year on Form N-Q. This
information is available on the Commission's website at http://www.sec.gov and
may be reviewed and copied at the Commission's Public Reference Room in
Washington, D.C. Information on the operation of the Public Reference Room is
available by calling 1-800-SEC-0330.
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TABLE OF CONTENTS
Shareholder Letter ........................................................ 1
Money Market Funds CIO Letter ............................................. 2
Financial Statements
- - Statements of Assets and Liabilities .................................... 4
- - Statements of Operations ................................................ 6
- - Statements of Changes in Net Assets ..................................... 11
Financial Highlights ...................................................... 16
Notes to Financial Statements ............................................. 21
Schedules of Portfolio Investments ........................................ 27
Report of Independent Registered Public Accounting Firm ................... 57
Management ................................................................ 58
Supplemental Information .................................................. 61
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SHAREHOLDER LETTER
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To Our Shareholders:
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Enclosed is the first annual report as of the new Tamarack Funds year-end of
September 30th. This report includes information on all of the Tamarack money
market funds as of that date. The Tamarack money market funds include both
taxable and tax-free portfolios and focus on a variety of security types.
The past twelve months have given all of us ample evidence of the volatility of
U.S. equity markets. For many investors, money market funds have provided more
stable asset values during this period and with recent increases in the Federal
Funds rate by the Federal Reserve Board, returns have also started to rise. At
the Tamarack Funds we believe it is also important for prudent investors to be
diversified as this not only allows investors to participate in positive returns
for those market sectors in favor, but also provides protection against the
downturns experienced by styles not currently being rewarded by the market. We
believe diversified investing should include equity, fixed income, and money
market securities. For a full overview of Tamarack equity and fixed income
funds, please visit our website at www.tamarackfunds.com.
This annual report includes detailed information as to the performance of your
Fund(s), as well as a message from the Tamarack Chief Investment Officer of
Fixed Income. This information is prepared to provide you with information as to
your Fund(s)' performance as well as a review of your Fund(s)' expenses. We
encourage you to review this information and hope you will find it helpful. Our
next shareholder report to you will be in six months, as of March 31, 2005. We
know that your investment in the Tamarack Funds is important to you. We value
the trust you have placed in us and will continue our efforts to provide you
with solid risk-balanced returns.
Sincerely,
/s/ Jennifer Lammers
Jennifer Lammers
President
Tamarack Funds
1
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TAMARACK MONEY MARKET FUNDS
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Letter from the CIO of Fixed Income
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MARKET COMMENTARY
Short-term interest rates were very low during most of the twelve-month period
ending September 30, 2004. The Federal Reserve kept the Fed Funds rate, which
is the rate at which banks lend each other money overnight, at 1.00% until the
end of June 2004. This 1.00% rate was the lowest in 40 years, and was designed
to prevent the possibility of deflation. After the economy showed sustained
growth in the spring, the Federal Reserve became convinced that the risk of
deflation had passed. The Fed therefore began to raise short-term interest
rates in order to lessen the very strong monetary stimulus to the economy
represented by historically low interest rates. The Fed raised the rate 3 times
in 0.25% increments to reach 1.75% by the end of the Funds' fiscal year.
Money market funds invest in high quality, short-term debt obligations that
have an average maturity of less than 90 days. The yields on these obligations
generally closely follow the Fed Funds rate and the anticipation of near-term
changes in the rate. Therefore, the yield on the Tamarack Money Market Funds
began to rise in the later part of the fiscal year as the market expected
action by the Federal Reserve. The Funds' yields continued to gradually rise as
the Fed Funds rate actually was increased.
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OUTLOOK
The Fed has indicated that it wants to continue reducing its stimulative
monetary policy in order to be closer to a "neutral" position. Unfortunately,
no one knows just what the "neutral" level is, nor how rapidly the Fed wants to
get there. The amount and timing of the increases will be dependent on the
performance of the economy. If the economy shows more rapid growth or if
inflation starts to accelerate, the Fed will raise rates higher and faster than
if the economy is sluggish. But we believe that barring a major economic
slow-down, the trend of short-term interest rates should be somewhat higher,
resulting in higher yields for money market investors for the foreseeable
future.
/s/ Raye C. Kanzenbach
Raye C. Kanzenbach
Chief Investment Officer, Fixed Income Funds
Tamarack Funds
[PHOTO]
2
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3
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FINANCIAL STATEMENTS
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Statements of Assets and Liabilities
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SEPTEMBER 30, 2004
TAMARACK TAMARACK TAMARACK
PRIME U.S. GOVERNMENT TAX-FREE
MONEY MONEY MONEY
MARKET FUND MARKET FUND MARKET FUND
----------------- ----------------- ---------------
ASSETS:
Investments, at market value (cost
$7,843,753,390; $951,542,687 and
$967,853,411, respectively) $7,843,753,390 $951,542,687 $967,853,411
Interest receivable 13,032,291 696,273 1,685,758
Cash 3,371 - -
Receivable for capital shares issued 38,265,940 - -
-------------- ------------ ------------
Total Assets 7,895,054,992 952,238,960 969,539,169
-------------- ------------ ------------
LIABILITIES:
Distributions payable 6,054,255 690,535 608,521
Payable for capital shares redeemed 1,042 3,988,742 3,440,456
Payable for investments purchased - - -
Accrued expenses and other payables:
Investment advisory fees 2,786,543 292,202 416,353
Administrative services fees 57,529 102,038 36,423
Other 1,552,238 156,671 282,163
-------------- ------------ ------------
Total Liabilities 10,451,607 5,230,188 4,783,916
-------------- ------------ ------------
Net Assets $7,884,603,385 $947,008,772 $964,755,253
============== ============ ============
NET ASSETS CONSIST OF:
Capital $7,884,487,272 $946,975,118 $964,717,186
Undistributed net investment income 124,857 33,751 39,724
Accumulated net realized losses from
investment transactions (8,744) (97) (1,657)
-------------- ------------ ------------
Net Assets $7,884,603,385 $947,008,772 $964,755,253
============== ============ ============
SHARES OUTSTANDING: 7,884,608,647 947,009,262 964,765,528
NET ASSET VALUES: $ 1.00 $ 1.00 $ 1.00
============== ============ ============
SEE NOTES TO FINANCIAL STATEMENTS.
4
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FINANCIAL STATEMENTS
================================================================================
Statements of Assets and Liabilities (cont.)
- --------------------------------------------------------------------------------
TAMARACK TAMARACK
INST'L PRIME INST'L TAX-FREE
MONEY MONEY
MARKET FUND MARKET FUND
---------------- ----------------
ASSETS:
Investments, at market value (cost $647,857,996 and
$390,957,385, respectively) $647,857,996 $390,957,385
Interest receivable 526,963 719,569
Cash - -
Receivable for capital shares issued - 2,123,229
------------ ------------
Total Assets 648,384,959 393,800,183
------------ ------------
LIABILITIES:
Distributions payable 733,824 356,509
Payable for capital shares redeemed 4,347,899 -
Payable for investments purchased - 6,505,207
Accrued expenses and other payables:
Investment advisory fees 136,254 82,159
Administrative services fees - -
Other 95,896 103,132
------------ ------------
Total Liabilities 5,313,873 7,047,007
------------ ------------
Net Assets $643,071,086 $386,753,176
============ ============
NET ASSETS CONSIST OF:
Capital $643,071,899 $386,837,406
Undistributed net investment income (loss) 26,679 (83,694)
Accumulated net realized losses from investment transactions (27,492) (536)
------------ ------------
Net Assets $643,071,086 $386,753,176
============ ============
SHARES OUTSTANDING: 643,080,317 386,837,406
NET ASSET VALUES: $ 1.00 $ 1.00
============ ============
SEE NOTES TO FINANCIAL STATEMENTS.
5
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FINANCIAL STATEMENTS
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Statements of Operations
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TAMARACK PRIME
MONEY MARKET FUND
FOR THE FOR THE
PERIOD ENDED YEAR ENDED
SEPTEMBER 30, 2004 (a) JULY 31, 2004
------------------------ ----------------
INVESTMENT INCOME:
Interest income $ 20,620,152 $ 92,213,421
------------ ------------
Total Investment Income 20,620,152 92,213,421
------------ ------------
EXPENSES:
Investment advisory fees 5,667,620 34,474,492
Distribution fees - Reserve Class - 66,208
Administrative services fees 3,339,130 20,326,410
Custodian fees 27,060 63,659
Registration and filing fees 188,069 209,669
Transfer agent fees 2,404,236 14,186,612
Trustees' fees 2,706 20,023
Other fees 844,974 3,517,348
------------ ------------
Total expenses before voluntary fee reductions 12,473,795 72,864,421
Expenses voluntarily reduced by:
Advisor (2,996,629) (15,011,741)
------------ ------------
Net Expenses 9,477,166 57,852,680
------------ ------------
NET INVESTMENT INCOME 11,142,986 34,360,741
------------ ------------
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
Net realized gains (losses) from investment transactions (8,744) -
------------ ------------
Change in net assets resulting from operations $ 11,134,242 $ 34,360,741
============ ============
(a) For the period from August 1, 2004 to September 30, 2004
SEE NOTES TO FINANCIAL STATEMENTS.
6
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FINANCIAL STATEMENTS
================================================================================
Statements of Operations (cont.)
- --------------------------------------------------------------------------------
TAMARACK U.S. GOVERNMENT
MONEY MARKET FUND
FOR THE FOR THE
PERIOD ENDED YEAR ENDED
SEPTEMBER 30, 2004 (a) JULY 31, 2004
------------------------ --------------
INVESTMENT INCOME:
Interest income $ 2,391,076 $ 10,961,877
------------ ------------
Total Investment Income 2,391,076 10,961,877
------------ ------------
EXPENSES:
Investment advisory fees 591,974 3,765,070
Distribution fees - Reserve Class - -
Administrative services fees 393,077 2,510,566
Custodian fees 4,253 12,727
Registration and filing fees 39,168 62,260
Transfer agent fees 126,166 783,764
Trustees' fees 2,993 20,000
Other fees 77,896 166,391
------------ ------------
Total expenses before voluntary fee reductions 1,235,527 7,320,778
Expenses voluntarily reduced by:
Advisor (120,198) (187,208)
------------ ------------
Net Expenses 1,115,329 7,133,570
------------ ------------
NET INVESTMENT INCOME 1,275,747 3,828,307
------------ ------------
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
Net realized gains (losses) from investment transactions (97) -
------------ ------------
Change in net assets resulting from operations $ 1,275,650 $ 3,828,307
============ ============
(a) For the period from August 1, 2004 to September 30, 2004
SEE NOTES TO FINANCIAL STATEMENTS.
7
================================================================================
FINANCIAL STATEMENTS
================================================================================
Statements of Operations (cont.)
- --------------------------------------------------------------------------------
TAMARACK TAX-FREE
MONEY MARKET FUND
FOR THE FOR THE
PERIOD ENDED YEAR ENDED
SEPTEMBER 30, 2004 (a) JULY 31, 2004
------------------------ --------------
INVESTMENT INCOME:
Interest income $ 2,156,369 $ 10,280,211
------------ ------------
Total Investment Income 2,156,369 10,280,211
------------ ------------
EXPENSES:
Investment advisory fees 853,306 5,136,192
Distribution fees - Reserve Class - -
Administrative services fees 426,653 2,568,098
Custodian fees 4,344 11,945
Registration and filing fees 986 273,674
Transfer agent fees 83,386 498,429
Trustees' fees 3,301 20,000
Other fees 52,702 346,391
------------ ------------
Total expenses before voluntary fee reductions 1,424,678 8,854,729
Expenses voluntarily reduced by:
Advisor (362,828) (2,484,116)
------------ ------------
Net Expenses 1,061,850 6,370,613
------------ ------------
NET INVESTMENT INCOME 1,094,519 3,909,598
------------ ------------
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
Net realized gains (losses) from investment transactions - -
------------ ------------
Change in net assets resulting from operations $ 1,094,519 $ 3,909,598
============ ============
(a) For the period from August 1, 2004 to September 30, 2004
SEE NOTES TO FINANCIAL STATEMENTS.
8
================================================================================
FINANCIAL STATEMENTS
================================================================================
Statements of Operations (cont.)
- --------------------------------------------------------------------------------
TAMARACK INSTITUTIONAL
PRIME MONEY MARKET FUND
FOR THE FOR THE
PERIOD ENDED YEAR ENDED
SEPTEMBER 30, 2004 (a) JULY 31, 2004
------------------------ --------------
INVESTMENT INCOME:
Interest income $ 1,723,437 $ 6,080,981
----------- -----------
Total Investment Income 1,723,437 6,080,981
----------- -----------
EXPENSES:
Investment advisory fees 277,777 1,331,720
Distribution fees - Reserve Class - -
Administrative services fees - -
Custodian fees 4,649 3,852
Registration and filing fees 13,993 77,460
Transfer agent fees 5,314 28,711
Trustees' fees 3,432 20,000
Other fees 16,212 106,470
----------- -----------
Total expenses before voluntary fee reductions 321,377 1,568,213
Expenses voluntarily reduced by:
Advisor - -
----------- -----------
Net Expenses 321,377 1,568,213
----------- -----------
NET INVESTMENT INCOME 1,402,060 4,512,768
----------- -----------
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
Net realized losses from investment transactions (4,159) (1,789)
----------- -----------
Change in net assets resulting from operations $ 1,397,901 $ 4,510,979
=========== ===========
(a) For the period from August 1, 2004 to September 30, 2004
SEE NOTES TO FINANCIAL STATEMENTS.
9
================================================================================
FINANCIAL STATEMENTS
================================================================================
Statements of Operations (cont.)
- --------------------------------------------------------------------------------
TAMARACK
INSTITUTIONAL TAX-FREE
MONEY MARKET FUND
FOR THE FOR THE
PERIOD ENDED YEAR ENDED
SEPTEMBER 30, 2004 (a) JULY 31, 2004
------------------------ --------------
INVESTMENT INCOME:
Interest income $ 843,294 $3,205,446
---------- ----------
Total Investment Income 843,294 3,205,446
---------- ----------
EXPENSES:
Investment advisory fees 164,273 773,607
Distribution fees - Reserve Class - -
Administrative services fees - -
Custodian fees 3,353 5,219
Registration and filing fees 9,646 92,695
Transfer agent fees 2,199 10,073
Trustees' fees 4,320 20,000
Other fees 13,410 78,506
---------- ----------
Total expenses before voluntary fee reductions 197,201 980,100
Expenses voluntarily reduced by:
Advisor - -
---------- ----------
Net Expenses 197,201 980,100
---------- ----------
NET INVESTMENT INCOME 646,093 2,225,346
---------- ----------
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
Net realized losses from investment transactions (83,694) -
---------- ----------
Change in net assets resulting from operations $ 562,399 $2,225,346
========== ==========
(a) For the period from August 1, 2004 to September 30, 2004
SEE NOTES TO FINANCIAL STATEMENTS.
10
================================================================================
FINANCIAL STATEMENTS
================================================================================
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
TAMARACK PRIME
MONEY MARKET FUND
FOR THE FOR THE FOR THE
PERIOD ENDED YEAR ENDED YEAR ENDED
SEPTEMBER 30, 2004 (a) JULY 31, 2004 JULY 31, 2003
------------------------ ------------------- -------------------
FROM INVESTMENT ACTIVITIES:
Operations:
Net investment income $ 11,142,986 $ 34,360,741 $ 67,001,976
Net realized losses from investment
transactions (8,744) - -
--------------- --------------- ---------------
Change in net assets from operations 11,134,242 34,360,741 67,001,976
--------------- --------------- ---------------
DISTRIBUTIONS TO INVESTOR CLASS
SHAREHOLDERS:
From net investment income (11,176,561) (34,288,469) (66,650,947)
DISTRIBUTIONS TO RESERVE CLASS
SHAREHOLDERS:
From net investment income - (27,448) (351,029)
--------------- --------------- ---------------
Change in net assets from shareholder
distributions (11,176,561) (34,315,917) (67,001,976)
--------------- --------------- ---------------
CAPITAL TRANSACTIONS:
Proceeds from shares issued - Investor
Class 681,995,480 3,988,817,725 3,847,736,761
Proceeds from shares issued - Reserve
Class - 25,505,098 122,836,800
Proceeds from shares issued in
connection with merger - 26,911,776 -
Dividends reinvested - Investor Class 9,281,244 30,176,000 66,650,947
Dividends reinvested - Reserve Class - 17,776 351,029
Cost of shares redeemed - Investor
Class (666,391,338) (4,297,497,682) (4,327,979,149)
Cost of shares redeemed - Reserve
Class - (133,424,994) (62,194,582)
--------------- --------------- ---------------
Change in net assets from capital
transactions 24,885,386 (359,494,301) (352,598,194)
--------------- --------------- ---------------
Net increase (decrease) in net assets 24,843,067 (359,449,477) (352,598,194)
NET ASSETS:
Beginning of year 7,859,760,318 8,219,209,795 8,571,807,989
--------------- --------------- ---------------
End of year $ 7,884,603,385 $ 7,859,760,318 $ 8,219,209,795
=============== =============== ===============
Undistributed (distributions in excess of)
net investment income $ 124,857 $ 158,432 $ -
=============== =============== ===============
SHARE TRANSACTIONS:
Issued - Investor Class 681,995,469 3,988,825,499 3,847,736,761
Issued - Reserve Class - 25,505,098 122,836,800
Issued in connection with merger - 26,911,776 -
Reinvested - Investor Class 9,281,244 30,176,000 66,650,947
Reinvested - Reserve Class - 17,776 351,029
Redeemed - Investor Class (666,391,338) (4,297,497,678) (4,327,979,149)
Redeemed - Reserve Class - (133,424,994) (62,194,582)
--------------- --------------- ---------------
Change in share transactions 24,885,375 (359,486,523) (352,598,194)
=============== =============== ===============
(a) For the period from August 1, 2004 to September 30, 2004
SEE NOTES TO FINANCIAL STATEMENTS.
11
================================================================================
FINANCIAL STATEMENTS
================================================================================
Statements of Changes in Net Assets (cont.)
- --------------------------------------------------------------------------------
TAMARACK U.S. GOVERNMENT
MONEY MARKET FUND
FOR THE FOR THE FOR THE
PERIOD ENDED YEAR ENDED YEAR ENDED
SEPTEMBER 30, 2004 (a) JULY 31, 2004 JULY 31, 2003
------------------------ ----------------- -----------------
FROM INVESTMENT ACTIVITIES:
Operations:
Net investment income $ 1,275,747 $ 3,828,307 $ 7,709,864
Net realized gains (losses) from
investment transactions (97) - -
--------------- --------------- ---------------
Change in net assets from operations 1,275,650 3,828,307 7,709,864
--------------- --------------- ---------------
DISTRIBUTIONS TO INVESTOR CLASS
SHAREHOLDERS:
From net investment income (1,279,496) (3,824,951) (7,689,597)
DISTRIBUTIONS TO RESERVE CLASS
SHAREHOLDERS:
From net investment income - - (20,267)
--------------- --------------- ---------------
Change in net assets from shareholder
distributions (1,279,496) (3,824,951) (7,709,864)
--------------- --------------- ---------------
CAPITAL TRANSACTIONS:
Proceeds from shares issued - Investor
Class 113,617,107 673,973,928 802,967,921
Proceeds from shares issued - Reserve
Class - - 4,948,069
Dividends reinvested - Investor Class 1,050,124 3,363,802 7,689,597
Dividends reinvested - Reserve Class - - 20,267
Cost of shares redeemed - Investor
Class (96,975,241) (808,084,710) (838,501,022)
Cost of shares redeemed - Reserve
Class - - (17,728,483)
--------------- --------------- ---------------
Change in net assets from capital
transactions 17,691,990 (130,746,980) (40,603,651)
--------------- --------------- ---------------
Net increase (decrease) in net assets 17,688,144 (130,743,624) (40,603,651)
NET ASSETS:
Beginning of year 929,320,628 1,060,064,252 1,100,667,903
--------------- --------------- ---------------
End of year $ 947,008,772 $ 929,320,628 $ 1,060,064,252
=============== =============== ===============
Undistributed (distributions in excess of)
net investment income $ 33,751 $ 37,499 $ -
=============== =============== ===============
SHARE TRANSACTIONS:
Issued - Investor Class 113,617,107 673,973,928 802,967,921
Issued - Reserve Class - - 4,948,069
Reinvested - Investor Class 1,050,124 3,363,802 7,689,597
Reinvested - Reserve Class - - 20,267
Redeemed - Investor Class (96,975,241) (808,084,710) (838,501,022)
Redeemed - Reserve Class - - (17,728,483)
--------------- --------------- ---------------
Change in share transactions 17,691,990 (130,746,980) (40,603,651)
=============== =============== ===============
(a) For the period from August 1, 2004 to September 30, 2004
SEE NOTES TO FINANCIAL STATEMENTS.
12
================================================================================
FINANCIAL STATEMENTS
================================================================================
Statements of Changes in Net Assets (cont.)
- --------------------------------------------------------------------------------
TAMARACK TAX-FREE
MONEY MARKET FUND
FOR THE FOR THE FOR THE
PERIOD ENDED YEAR ENDED YEAR ENDED
SEPTEMBER 30, 2004 (a) JULY 31, 2004 JULY 31, 2003
------------------------ ------------------- -------------------
FROM INVESTMENT ACTIVITIES:
Operations:
Net investment income $ 1,094,519 $ 3,909,598 $ 5,980,004
Net realized gains (losses) from
investment transactions - - -
--------------- --------------- ---------------
Change in net assets from operations 1,094,519 3,909,598 5,980,004
--------------- --------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income (1,103,137) (3,909,598) (5,980,004)
--------------- --------------- ---------------
Change in net assets from shareholder
distributions (1,103,137) (3,909,598) (5,980,004)
--------------- --------------- ---------------
CAPITAL TRANSACTIONS:
Proceeds from shares issued 199,957,747 1,398,047,428 1,067,794,724
Dividends reinvested 876,189 3,528,079 5,980,004
Cost of shares redeemed (238,831,476) (1,344,919,577) (1,036,742,832)
--------------- --------------- ---------------
Change in net assets from capital
transactions (37,997,540) 56,655,930 37,031,896
--------------- --------------- ---------------
Net increase (decrease) in net assets (38,006,158) 56,655,930 37,031,896
NET ASSETS:
Beginning of year 1,002,761,411 946,105,481 909,073,585
--------------- --------------- ---------------
End of year $ 964,755,253 $ 1,002,761,411 $ 946,105,481
=============== =============== ===============
Undistributed (distributions in excess of)
net investment income $ 39,724 $ 48,342 $ -
=============== =============== ===============
SHARE TRANSACTIONS:
Issued 199,957,747 1,398,049,085 1,067,794,724
Reinvested 876,189 3,528,079 5,980,004
Redeemed (238,831,476) (1,344,919,577) (1,036,742,832)
--------------- --------------- ---------------
Change in share transactions (37,997,540) 56,657,587 37,031,896
=============== =============== ===============
(a) For the period from August 1, 2004 to September 30, 2004
SEE NOTES TO FINANCIAL STATEMENTS.
13
================================================================================
FINANCIAL STATEMENTS
================================================================================
Statements of Changes in Net Assets (cont.)
- --------------------------------------------------------------------------------
TAMARACK
INSTITUTIONAL PRIME
MONEY MARKET FUND
FOR THE FOR THE FOR THE
PERIOD ENDED YEAR ENDED YEAR ENDED
SEPTEMBER 30, 2004 (a) JULY 31, 2004 JULY 31, 2003
------------------------ ----------------- -----------------
FROM INVESTMENT ACTIVITIES:
Operations:
Net investment income $ 1,402,060 $ 4,512,768 $ 5,847,762
Net realized losses from investment
transactions (4,159) (1,789) -
------------- ------------- -------------
Change in net assets from operations 1,397,901 4,510,979 5,847,762
------------- ------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income (1,405,342) (4,512,768) (5,847,762)
------------- ------------- -------------
Change in net assets from shareholder
distributions (1,405,342) (4,512,768) (5,847,762)
------------- ------------- -------------
CAPITAL TRANSACTIONS:
Proceeds from shares issued 146,777,797 868,713,053 739,486,873
Dividends reinvested 1,196,618 3,987,676 5,847,762
Cost of shares redeemed (160,607,490) (719,575,693) (691,946,616)
------------- ------------- -------------
Change in net assets from capital
transactions (12,633,075) 153,125,036 53,388,019
------------- ------------- -------------
Net increase (decrease) in net assets (12,640,516) 153,123,247 53,388,019
NET ASSETS:
Beginning of year 655,711,602 502,588,355 449,200,336
------------- ------------- -------------
End of year $ 643,071,086 $ 655,711,602 $ 502,588,355
============= ============= =============
Undistributed (distributions in excess of)
net investment income $ 26,679 $ 29,961 $ -
============= ============= =============
SHARE TRANSACTIONS:
Issued 146,777,797 868,713,043 739,486,873
Reinvested 1,196,618 3,987,687 5,847,762
Redeemed (160,607,490) (719,575,693) (691,946,616)
------------- ------------- -------------
Change in share transactions (12,633,075) 153,125,037 53,388,019
============= ============= =============
(a) For the period from August 1, 2004 to September 30, 2004
SEE NOTES TO FINANCIAL STATEMENTS.
14
================================================================================
FINANCIAL STATEMENTS
================================================================================
Statements of Changes in Net Assets (cont.)
- --------------------------------------------------------------------------------
TAMARACK
INSTITUTIONAL TAX-FREE
MONEY MARKET FUND
FOR THE FOR THE FOR THE
PERIOD ENDED YEAR ENDED YEAR ENDED
SEPTEMBER 30, 2004 (a) JULY 31, 2004 JULY 31, 2003
------------------------ ----------------- -----------------
FROM INVESTMENT ACTIVITIES:
Operations:
Net investment income $ 646,093 $ 2,225,346 $ 2,156,996
Net realized losses from investment
transactions (83,694) - -
------------- ------------- -------------
Change in net assets from operations 562,399 2,225,346 2,156,996
------------- ------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income (646,629) (2,225,346) (2,156,996)
------------- ------------- -------------
Change in net assets from shareholder
distributions (646,629) (2,225,346) (2,156,996)
------------- ------------- -------------
CAPITAL TRANSACTIONS:
Proceeds from shares issued 174,646,590 611,043,409 398,822,967
Dividends reinvested 530,053 1,985,412 2,156,996
Cost of shares redeemed (143,092,536) (502,289,773) (350,141,125)
------------- ------------- -------------
Change in net assets from capital
transactions 32,084,107 110,739,048 50,838,838
------------- ------------- -------------
Net increase (decrease) in net assets 31,999,877 110,739,048 50,838,838
NET ASSETS:
Beginning of year 354,753,299 244,014,251 193,175,413
------------- ------------- -------------
End of year $ 386,753,176 $ 354,753,299 $ 244,014,251
============= ============= =============
Undistributed (distributions in excess of )
net investment income $ (83,694) $ 536 $ -
============= ============= =============
SHARE TRANSACTIONS:
Issued 174,646,590 611,043,409 398,822,967
Reinvested 530,053 1,985,412 2,156,996
Redeemed (143,092,536) (502,289,773) (350,141,125)
------------- ------------- -------------
Change in share transactions 32,084,107 110,739,048 50,838,838
============= ============= =============
(a) For the period from August 1, 2004 to September 30, 2004
SEE NOTES TO FINANCIAL STATEMENTS.
15
================================================================================
FINANCIAL HIGHLIGHTS
================================================================================
Tamarack Prime Money Market Fund
- --------------------------------------------------------------------------------
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE YEARS ENDED JULY 31
(EXCEPT AS NOTED)
INVESTOR SHARE CLASS 2004 (a) 2004 2003 2002 2001 2000
- -------------------- -------- ------- ------- ------- ------- -------
Net Asset Value, Beginning of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
INVESTMENT ACTIVITIES:
Net Investment Income (Loss) -(b) -(b) 0.01 0.02 0.05 0.05
------- ------- ------- ------- ------- -------
Total from Investment Activities - - 0.01 0.02 0.05 0.05
DISTRIBUTIONS:
Net Investment Income -(b) -(b) (0.01) (0.02) (0.05) (0.05)
------- ------- ------- ------- ------- -------
Total Distributions - - (0.01) (0.02) (0.05) (0.05)
------- ------- ------- ------- ------- -------
Net Asset Value, End of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Total Return 0.14%(c) 0.42% 0.80% 1.70% 5.10% 5.30%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (millions) $ 7,885 $ 7,860 $ 8,111 $ 8,524 $ 5,282 $ 4,852
Ratio of Expenses to Average Net Assets 0.71%(d) 0.71% 0.71% 0.69% 0.62% 0.63%
Ratio of Net Investment Income (Loss) to 0.83%(d) 0.42% 0.80% 1.66% 5.11% 5.32%
Average Net Assets
Ratio of Expenses to Average Net Assets* 0.93%(d) 0.90% 0.90% 0.73% (e) (e)
Ratio of Net Investment Income (Loss) to 0.61%(d) 0.24% 0.61% 1.61% (e) (e)
Average Net Assets*
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratio would have been as indicated.
(a) For the period from August 1, 2004 to September 30, 2004
(b) Less than $0.01 per share.
(c) Not Annualized.
(d) Annualized.
(e) There were no waivers or reimbursements during the period.
SEE NOTES TO FINANCIAL STATEMENTS.
16
================================================================================
FINANCIAL HIGHLIGHTS
================================================================================
Tamarack U.S. Government Money Market Fund
- --------------------------------------------------------------------------------
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE YEARS ENDED JULY 31
(EXCEPT AS NOTED)
INVESTOR SHARE CLASS 2004 (a) 2004 2003 2002 2001 2000
- -------------------- -------- ------- ------- ------- ------- -------
Net Asset Value, Beginning of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
INVESTMENT ACTIVITIES:
Net Investment Income (Loss) -(b) -(b) 0.01 0.02 0.05 0.05
------- ------- ------- ------- ------- -------
Total from Investment Activities - - 0.01 0.02 0.05 0.05
DISTRIBUTIONS:
Net Investment Income -(b) -(b) (0.01) (0.02) (0.05) (0.05)
------- ------- ------- ------- ------- -------
Total Distributions - - (0.01) (0.02) (0.05) (0.05)
------- ------- ------- ------- ------- -------
Net Asset Value, End of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Total Return 0.14%(c) 0.38% 0.70% 1.60% 4.90% 5.20%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (millions) $ 947 $ 929 $ 1,060 $ 1,088 $ 462 $ 267
Ratio of Expenses to Average Net Assets 0.71%(d) 0.71% 0.71% 0.57% 0.54% 0.57%
Ratio of Net Investment Income (Loss) to 0.81%(d) 0.38% 0.70% 1.60% 4.88% 5.22%
Average Net Assets
Ratio of Expenses to Average Net Assets* 0.79%(d) 0.73% 0.75% 0.59% (e) (e)
Ratio of Net Investment Income (Loss) to 0.73%(d) 0.36% 0.66% 1.58% (e) (e)
Average Net Assets*
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratio would have been as indicated.
(a) For the period from August 1, 2004 to September 30, 2004
(b) Less than $0.01 per share.
(c) Not Annualized.
(d) Annualized.
(e) There were no waivers or reimbursements during the period.
SEE NOTES TO FINANCIAL STATEMENTS.
17
================================================================================
FINANCIAL HIGHLIGHTS
================================================================================
Tamarack Tax-Free Money Market Fund
- --------------------------------------------------------------------------------
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE YEARS ENDED JULY 31
(EXCEPT AS NOTED)
2004 (a) 2004 2003 2002 2001 2000
------- ------- ------- ------- ------- -------
Net Asset Value, Beginning of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
INVESTMENT ACTIVITIES:
Net Investment Income (Loss) -(b) -(b) 0.01 0.01 0.03 0.03
------- ------- ------- ------- ------- -------
Total from Investment Activities - - 0.01 0.01 0.03 0.03
DISTRIBUTIONS:
Net Investment Income -(b) -(b) (0.01) (0.01) (0.03) (0.03)
------- ------- ------- ------- ------- -------
Total Distributions - - (0.01) (0.01) (0.03) (0.03)
------- ------- ------- ------- ------- -------
Net Asset Value, End of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Total Return 0.11%(c) 0.38% 0.60% 1.10% 3.10% 3.20%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (millions) $ 965 $ 1,003 $ 946 $ 909 $ 490 $ 426
Ratio of Expenses to Average Net Assets 0.62%(d) 0.62% 0.62% 0.59% 0.59% 0.59%
Ratio of Net Investment Income (Loss) to 0.64%(d) 0.38% 0.62% 1.08% 3.07% 3.16%
Average Net Assets
Ratio of Expenses to Average Net Assets* 0.83%(d) 0.86% 0.85% 0.65% (e) (e)
Ratio of Net Investment Income (Loss) to 0.43%(d) 0.14% 0.39% 1.03% (e) (e)
Average Net Assets*
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratio would have been as indicated.
(a) For the period from August 1, 2004 to September 30, 2004
(b) Less than $0.01 per share.
(c) Not Annualized.
(d) Annualized.
(e) There were no waivers or reimbursements during the period.
SEE NOTES TO FINANCIAL STATEMENTS.
18
================================================================================
FINANCIAL HIGHLIGHTS
================================================================================
Tamarack Institutional Prime Money Market Fund
- --------------------------------------------------------------------------------
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE YEARS ENDED JULY 31
(EXCEPT AS NOTED)
2004 (a) 2004 2003 2002 2001 2000
-------- ------- ------- ------- ------- -------
Net Asset Value, Beginning of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
INVESTMENT ACTIVITIES:
Net Investment Income -(b) 0.01 0.01 0.02 0.06 0.06
------- ------- ------- ------- ------- -------
Total from Investment Activities - 0.01 0.01 0.02 0.06 0.06
DISTRIBUTIONS:
Net Investment Income -(b) (0.01) (0.01) (0.02) (0.06) (0.06)
------- ------- ------- ------- ------- -------
Total Distributions - (0.01) (0.01) (0.02) (0.06) (0.06)
------- ------- ------- ------- ------- -------
Net Asset Value, End of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Total Return 0.21%(c) 0.85% 1.20% 2.20% 5.50% 5.70%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (millions) $ 643 $ 656 $ 503 $ 449 $ 366 $ 382
Ratio of Expenses to Average Net Assets 0.29%(d) 0.29% 0.30% 0.30% 0.31% 0.32%
Ratio of Net Investment Income to Average 1.26%(d) 0.85% 1.20% 2.17% 5.52% 5.68%
Net Assets
(a) For the period from August 1, 2004 to September 30, 2004.
(b) Less than $0.01 per share.
(c) Not Annualized.
(d) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
19
================================================================================
FINANCIAL HIGHLIGHTS
================================================================================
Tamarack Institutional Tax-Free Money Market Fund
- --------------------------------------------------------------------------------
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE YEARS ENDED JULY 31
(EXCEPT AS NOTED)
2004 (a) 2004 2003 2002 2001 2000
-------- ------- ------- ------- ------- -------
Net Asset Value, Beginning of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
INVESTMENT ACTIVITIES:
Net Investment Income -(b) 0.01 0.01 0.01 0.03 0.03
------- ------- ------- ------- ------- -------
Total from Investment Activities - 0.01 0.01 0.01 0.03 0.03
DISTRIBUTIONS:
Net Investment Income -(b) (0.01) (0.01) (0.01) (0.03) (0.03)
------- ------- ------- ------- ------- -------
Total Distributions - (0.01) (0.01) (0.01) (0.03) (0.03)
------- ------- ------- ------- ------- -------
Net Asset Value, End of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Total Return 0.16%(c) 0.72% 0.90% 1.40% 3.30% 3.40%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (millions) $ 387 $ 355 $ 244 $ 193 $ 172 $ 159
Ratio of Expenses to Average Net Assets 0.30%(d) 0.32% 0.33% 0.36% 0.39% 0.39%
Ratio of Net Investment Income to Average 0.98%(d) 0.72% 0.90% 1.42% 3.32% 3.49%
Net Assets
Ratio of Expenses to Average Net Assets* (e) (e) (e) (e) (e) 0.44%
Ratio of Net Investment Income (Loss) to (e) (e) (e) (e) (e) 3.44%
Average Net Assets*
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratio would have been as indicated.
(a) For the period from August 1, 2004 to September 30, 2004.
(b) Less than $0.01 per share.
(c) Not Annualized.
(d) Annualized.
(e) There were no waivers or reimbursements during the period.
SEE NOTES TO FINANCIAL STATEMENTS.
20
================================================================================
NOTES TO FINANCIAL STATEMENTS
================================================================================
September 30, 2004
- --------------------------------------------------------------------------------
1. ORGANIZATION
Tamarack Funds Trust ("Tamarack") is registered under the Investment Company Act
of 1940 (as amended) as an open-end management investment company. Tamarack was
organized as a Delaware statutory trust on December 16, 2003. Effective April
16, 2004, and based on approval of shareholders, seventeen separate investment
portfolios were reorganized as investment portfolios of Tamarack with a new
fiscal year end of September 30th. This annual report includes the following
five investment portfolios ("Funds"):
- - Tamarack Prime Money Market Fund ("Prime Money Market Fund")
- - Tamarack U.S. Government Money Market Fund ("U.S. Government Money Market
Fund")
- - Tamarack Tax-Free Money Market Fund ("Tax-Free Money Market Fund")
- - Tamarack Institutional Prime Money Market Fund ("Institutional Prime Money
Market Fund")
- - Tamarack Institutional Tax-Free Money Market Fund ("Institutional Tax-Free
Money Market Fund")
Voyageur Asset Management Inc. ("Voyageur") acts as the investment advisor for
Tamarack. The officers of Tamarack ("Fund Management") are also employees of
Voyageur or its affiliates.
Under the Funds' organizational documents, the Funds' officers and trustees are
indemnified against certain liabilities arising out of the performance of their
duties related to the Funds. In addition, in the normal course of business, the
Funds enter into contracts with their vendors and others that provide for
indemnification by the Funds in certain situations. These situations may involve
future, unknown claims made against the Funds. However, any risk of loss to the
Funds which may arise from such claims is expected to be remote.
21
================================================================================
NOTES TO FINANCIAL STATEMENTS
================================================================================
- --------------------------------------------------------------------------------
2. SIGNIFICANT ACCOUNTING POLICIES
Summarized below are the significant accounting policies of the Funds. These
policies conform to accounting principles generally accepted in the United
States of America ("GAAP"). Fund management follows these policies when
preparing financial statements. Management may also be required to make
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the reported amounts of
income and expenses for the period. Actual results could differ from those
estimates.
SECURITY VALUATION:
Security transactions are accounted for on the date the security is bought or
sold ("trade date"). Pursuant to Rule 2a-7 of the Investment Company Act of
1940 (as amended), securities in money market funds are valued at amortized
cost, which approximates market value, in order to maintain a constant net
asset value of $1.00 per share. Money market funds must invest exclusively in
high quality securities. To be considered high quality, a security generally
must be rated in one of the two highest short-term credit quality categories by
a nationally recognized rating organization such as Standard & Poors
Corporation or Moody's Investors Service, Inc. The Funds do not invest in any
unrated securities.
Bonds and other fixed income securities are generally valued on the basis of
valuations furnished by pricing services approved by Tamarack's Board of
Trustees (the "Board"). The pricing services utilize both dealer-supplied
valuations and electronic data processing techniques that take into account
appropriate factors such as institutional-size trading in similar groups of
securities, yield, quality, coupon rate, maturity, type of issue and trading
characteristics other than market data and without exclusive reliance upon
quoted prices of exchanges or over-the-counter prices, since these valuations
are believed to reflect more accurately the fair value of such securities.
Short-term debt obligations are valued at amortized cost, which approximates
market value, unless Fund Management determines that amortized cost no longer
approximates market value due to credit or other impairments of the issuer. In
such cases and also where a security price is unavailable from a pricing
service, Tamarack has established procedures to determine a security's fair
value. This report presents information as of Tamarack's fiscal year end of
September 30, 2004.
INVESTMENT TRANSACTIONS:
Dividend income is recorded on the ex-dividend date. Securities gains and
losses are calculated based on the costs of the specific security (also known
as identified cost basis). Interest income is recognized on the accrual basis
and includes, where applicable, the amortization or accretion of premium or
discount.
FINANCIAL INSTRUMENTS:
The Funds may engage in when-issued (to be announced) transactions. The Funds
would record when-issued securities on the actual trade date and maintain
sufficient liquidity so that cash will be available to make payment for the
securities purchased. Securities purchased on a when-issued or delayed delivery
basis are valued daily and begin earning interest on the settlement date. As of
September 30, 2004, the Funds held no when-issued securities.
22
================================================================================
NOTES TO FINANCIAL STATEMENTS
================================================================================
REPURCHASE AGREEMENTS:
The Funds may enter into repurchase agreements with primary dealers that report
to the Federal Reserve Bank of New York or the 100 largest U.S. commercial
banks (as measured by domestic deposits) who are deemed creditworthy under
guidelines approved by the Board. These repurchase agreements are subject to
the seller's agreement to repurchase such securities at a mutually agreed upon
date and price. The repurchase price generally equals the price paid by the
Funds plus interest negotiated on the basis of current short-term rates.
Securities pledged as collateral for repurchase agreements are held by the
Funds' custodian bank until maturity of the repurchase agreement. The Funds
have procedures in place for these agreements to ensure that the daily market
value of the collateral is in excess of the repurchase agreement in the event
of a default. As of September 30, 2004, there were no repurchase agreements
outstanding for any of the Funds.
EXPENSE, INVESTMENT INCOME AND GAIN/LOSS ALLOCATION:
Each Fund pays the expenses that are directly related to its operations, such
as trading costs or portfolio management fees. Expenses incurred by Tamarack on
behalf of multiple Funds, such as trustee or legal fees, are allocated
proportionately among each of the Funds based either on each Fund's net assets
or on another reasonable basis such as equally across all Funds, depending on
the nature of the expense.
DISTRIBUTIONS TO SHAREHOLDERS:
Each Fund pays out any income that it receives, less expenses, in the form of
dividends to its shareholders. Income dividends are declared daily and paid
monthly. Capital gains (if any) are declared and paid at least annually.
Distributions to shareholders are recorded on the ex-dividend date. The amount
of dividends and distributions are calculated based on federal income tax
regulations, which may differ from GAAP. These "book/tax" differences may be
either temporary or permanent in nature. To the extent these differences are
permanent (e.g. expiring capital loss carryforward and foreign currency
transactions), they are reclassified within the Funds' capital accounts based
on their federal tax basis treatment. Such differences are not reflected in the
financial highlights calculations.
23
================================================================================
NOTES TO FINANCIAL STATEMENTS
================================================================================
- --------------------------------------------------------------------------------
3. AGREEMENTS AND OTHER TRANSACTIONS WITH AFFILIATES
Tamarack, on behalf of the Funds, has entered into an investment advisory
agreement with Voyageur, under which Voyageur manages the Funds' assets and
furnishes related office facilities, equipment, research and personnel. The
agreement requires the Funds to pay Voyageur a monthly fee based upon average
daily net assets. Under the terms of the advisory contracts Voyageur is
entitled to receive fees based on a percentage of the average daily net assets
as follows:
Average Daily Net
Assets of Fund Annual Rate
-------------------- ------------
Prime Money Market Fund Up to $700 million 0.55%
Next $500 million 0.50%
Next $800 million 0.45%
Over $2 billion 0.40%
U.S. Government Money Market Fund Up to $100 million 0.50%
Next $200 million 0.40%
Over $300 million 0.35%
Tax-Free Money Market Fund 0.50%
Institutional Prime Money Market Fund 0.25%
Institutional Tax-Free Money Market Fund 0.25%
Voyageur has contractually agreed to waive fees and/or to make payments in
order to keep total operating expenses at 0.71% for the Prime Money Market and
U.S. Government Money Market Funds and 0.62% for the Tax-Free Money Market
Fund. This expense limitation agreement is in place until November 30, 2004.
Voyageur may also voluntarily waive and/or reimburse operating expenses of the
Funds from time to time. Any such voluntary program may be changed or
eliminated at any time without notice.
Voyageur serves as administrator to the Funds and BISYS Fund Services Ohio,
Inc. ("BISYS") serves as sub-administrator. Services provided under the
administrative services contract include providing day-to-day administration of
matters related to the Funds, maintenance of their records and the preparation
of reports. Effective April 16, 2004 and under the terms of the administrative
services contract, Voyageur receives from the Prime Money Market Fund, U.S.
Government Money Market Fund and Tax-Free Money Market Funds a fee, payable
monthly, at the annual rate of 0.25% of the Funds' average daily net assets.
For its services as sub-administrator, BISYS receives a fee payable by Voyageur
out of Voyageur's own resources.
The Prime Money Market Fund had adopted a Plan of Distribution under Rule 12b-1
of the 1940 Act with respect to its Reserve Share Class. Under the Plan of
Distribution, the Reserve Class paid an annual fee of 0.25% of average daily
net assets of any outstanding shares which was accrued daily and paid monthly.
Effective October 31, 2003, the Prime Money Market Fund discontinued offering
the Reserve Shares and converted any existing Reserve Shares to Investor
Shares.
24
================================================================================
NOTES TO FINANCIAL STATEMENTS
================================================================================
- --------------------------------------------------------------------------------
4. FEDERAL INCOME TAXES
It is the policy of each Fund to qualify as a regulated investment company by
complying with the provisions available to certain investment companies, as
defined under Subchapter M of the Internal Revenue Code, and to distribute
substantially all of its net investment income and net realized capital gains.
Therefore, no federal tax liability is recorded in the financial statements of
each Fund. Effective for the taxable year ended September 30, 2004, each of the
funds changed its annual tax period to September 30th.
The tax character of distributions during the period ended September 30, 2004
was as follows:
Distribution Paid From
--------------------------------
Net Net Total
Investment Long Term Total Taxable Tax Exempt Distributions
Income Capital Gains Distributions Distributions Paid
----------- ------------- ------------- ------------- --------------
Prime Money Market Fund $9,281,239 $ - $9,281,239 $ - $9,281,239
U.S. Government Money
Market Fund 1,050,126 - 1,050,126 - 1,050,126
Tax-Free Money Market
Fund - - - 876,150 876,150
Institutional Prime Money
Market Fund 1,196,625 - 1,196,625 - 1,196,625
Institutional Tax-Free
Money Market Fund - - - 530,055 530,055
The Tax-Free Money Market and Institutional Tax-Free Money Market Funds hereby
designate 100% of the amounts listed above as "Tax Exempt Distributions" as
exempt-interest dividends for federal income tax purposes.
The tax character of distributions during the fiscal year ended July 31, 2004
was as follows:
Distribution Paid From
--------------------------------
Net Net Total
Investment Long Term Total Taxable Tax Exempt Distributions
Income Capital Gains Distributions Distributions Paid
----------- ------------- ------------- ------------- --------------
Prime Money Market Fund $30,156,984 $ - $30,156,984 $ - $30,156,984
U.S. Government Money
Market Fund 3,363,786 - 3,363,786 - 3,363,786
Tax-Free Money Money
Market Fund - - - 3,528,064 3,528,064
Institutional Prime Money
Market Fund 3,987,661 - 3,987,661 - 3,987,661
Institutional Tax-Free
Money Market Fund - - - 1,985,411 1,985,411
25
================================================================================
NOTES TO FINANCIAL STATEMENTS
================================================================================
As of September 30, 2004 the components of accumulated earnings/(deficit) on a
tax basis were as follows:
Undist. Accum.
Undist. Long- Capital Total
Tax Taxable Term and Unrealized Accum.
Exempt Ordinary Capital Accum. Distribution Other Appreciation/ Earnings/
Income Income Gains Earnings Payable Losses Depreciation (Deficit)
---------- ------------- --------- ------------- ---------------- ------------ --------------- ------------
Prime Money
Market Fund $ - $6,179,112 $ - $6,179,112 $(6,054,255) $ (8,744) $ - $116,113
U.S. Government
Money Market
Fund - 724,286 - 724,286 (690,535) (97) - 33,654
Tax-Free Money
Money Market
Fund 648,245 - - 648,245 (608,521) (1,657) - 38,067
Institutional Prime
Money Market
Fund - 760,503 - 760,503 (733,824) (27,492) - (813)
Institutional
Tax-Free Money
Market Fund 272,815 - - 272,815 (356,509) (536) - (84,230)
As of September 30, 2004, the following Funds had net capital loss
carryforwards to offset future net capital gains or net investment income, if
any:
Capital Loss
Carryforward Expires
-------------- --------
Prime Money Market Fund $ 8,744 2012
U.S. Government Money Market Fund 97 2012
Tax-Free Money Market Fund 1,657 2010
Institutional Prime Money Market Fund 21,544 2009
279 2011
5,669 2012
Institutional Tax-Free Money Market Fund 536 2009
- --------------------------------------------------------------------------------
26
================================================================================
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
Tamarack Prime Money Market Fund
- --------------------------------------------------------------------------------
SEPTEMBER 30, 2004
SHARES OR
PRINCIPAL
AMOUNT VALUE
- ------------- -------------
COMMERCIAL PAPER - 54.7%
ASSET BACKED - 15.0%
62,000,000 Amsterdam Funding $ 61,970,337
Corp., 1.58%, 10/12/04
55,000,000 Barton Capital Corp., 54,973,783
1.56%, 10/12/04
81,429,000 Barton Capital Corp., 81,382,834
1.57%, 10/14/04
42,000,000 Barton Capital Corp., 41,920,130
1.64%, 11/12/04
94,000,000 Delaware Funding 93,987,781
Corp., 1.56%, 10/4/04
54,396,000 Delaware Funding 54,359,827
Corp., 1.71%, 10/15/04
52,699,000 Edison Asset 52,620,493
Securitization,
1.73%, 11/1/04
50,000,000 Edison Asset 49,868,236
Securitization,
1.79%, 11/23/04
58,686,000 Edison Asset 58,511,148
Securitization,
1.73%, 12/2/04
40,000,000 Falcon Asset 40,000,000
Securitization,
1.72%, 10/1/04
49,175,000 Falcon Asset 49,142,107
Securitization,
1.61%, 10/15/04
62,000,000 Falcon Asset 61,766,208
Securitization,
1.81%, 12/15/04
30,000,000 Liberty Street Funding, 29,975,208
1.75%, 10/18/04
45,000,000 Liberty Street Funding, 44,931,025
1.78%, 11/1/04
15,000,000 Nieuw Amsterdam 14,946,525
Receivables Corp.,
1.86%, 12/9/04
45,423,000 Nieuw Amsterdam 45,251,717
Receivables Corp.,
1.81%, 12/15/04
57,000,000 Preferred Receivables 56,863,327
Funding Corp.,
1.66%, 11/22/04
20,000,000 Ranger Funding Co. 19,968,178
LLC, 1.79%, 11/2/04
61,260,000 Receivables Capital 61,157,832
Corp., 1.59%, 11/8/04
80,000,000 Windmill Funding 79,904,667
Corp., 1.65%, 10/27/04
50,000,000 Windmill Funding 49,936,222
Corp., 1.64%, 10/29/04
SHARES OR
PRINCIPAL
AMOUNT VALUE
- ------------- -------------
40,000,000 Yorktown Capital Corp., $ 40,000,000
1.61%, 10/1/04
41,629,000 Yorktown Capital Corp., 41,464,276
1.85%, 12/17/04 -------------
1,184,901,861
-------------
BANKS - CANADA 2.3%
100,000,000 Bank of Montreal, 100,000,000
1.77%, 11/8/04
80,000,000 Toronto Dominion Bank, 80,000,000
1.68%, 11/24/04 -------------
180,000,000
-------------
BANKS - FOREIGN 15.9%
100,000,000 ABN-AMRO, 100,000,000
1.64%, 11/19/04
100,000,000 Barclays Bank PLC, 99,760,000
1.80%, 11/18/04
50,000,000 Dexia Delaware LLC, 49,928,889
1.61%, 11/2/04
90,000,000 Dexia Delaware LLC, 89,734,500
1.80%, 11/29/04
90,000,000 HBOS Treasury Services, 89,836,000
1.65%, 11/10/04
75,000,000 ING Funding LLC, 74,962,500
1.50%, 10/13/04
50,000,000 ING Funding LLC, 49,963,875
1.53%, 10/18/04
50,000,000 ING Funding LLC, 49,830,944
1.79%, 12/8/04
35,000,000 Nationwide Building 34,872,250
Society,
1.80%, 12/13/04
50,000,000 Nationwide Building 49,807,500
Society,
1.80%, 12/17/04
75,000,000 Nationwide Building 74,675,781
Society,
1.88%, 12/23/04
60,000,000 Northern Rock PLC, 59,954,100
1.53%, 10/19/04
50,000,000 Northern Rock PLC, 49,892,292
1.65%, 11/17/04
100,000,000 Royal Bank of Scotland, 100,000,000
1.49%, 10/8/04
70,000,000 Royal Bank of Scotland, 69,787,667
1.82%, 11/30/04
76,954,000 Sheffield Funding, 76,683,165
1.81%, 12/10/04
75,000,000 Societe Generale North 75,000,000
America, 1.63%, 11/17/04
60,000,000 UBS Finance, 59,955,517
1.57%, 10/18/04 -------------
1,254,644,980
-------------
27
================================================================================
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
Tamarack Prime Money Market Fund (cont.)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
- ------------- -------------
CONGLOMERATES - 0.3%
26,000,000 Fortune Brands, Inc., $ 25,995,580
1.53%, 10/5/04 -------------
FINANCE - AUTOMOTIVE - 1.8%
70,000,000 Toyota Motor Credit 69,926,733
Corp., 1.57%, 10/25/04
75,000,000 Toyota Motor Credit 74,756,625
Corp., 1.77%, 12/6/04 -------------
144,683,358
-------------
FINANCE - DIVERSIFIED - 9.7%
100,000,000 Bank of America, 99,878,499
1.62%, 10/28/04
55,000,000 Citicorp, Inc., 54,968,619
1.58%, 10/14/04
50,000,000 General Electric Capital 49,991,667
Corp., 1.11%, 10/5/04
75,000,000 General Electric Capital 74,718,750
Corp., 1.80%, 12/15/04
100,000,000 Goldman Sachs Group, 99,761,500
Inc., 1.63%, 11/23/04
50,000,000 Household Finance 49,952,750
Corp., 1.62%, 10/22/04
25,000,000 Household Finance 24,968,306
Corp., 1.63%, 10/29/04
60,000,000 Household Finance 59,904,917
Corp., 1.64%, 11/5/04
50,000,000 Marsh & Ilsley Corp., 49,987,000
1.56%, 10/7/04
80,000,000 Morgan Stanley, 80,000,000
1.96%, 1/5/05, (b)
80,000,000 Morgan Stanley, 80,000,000
1.96%, 2/17/05, (b)
40,000,000 Morgan Stanley, 40,000,000
1.76%, 10/14/05, (b) -------------
764,132,008
-------------
FINANCE - UTILITY - 0.4%
30,000,000 National Rural Utilities 29,949,567
Cooperative Finance -------------
Corp., 1.78%, 11/4/04
HOUSEHOLD PRODUCTS - 1.9%
46,600,000 Proctor & Gamble Co., 46,590,486
1.47%, 10/6/04
50,000,000 Proctor & Gamble Co., 49,975,000
1.50%, 10/13/04
50,000,000 Proctor & Gamble Co., 50,000,000
1.83%, 9/2/05, (b) -------------
146,565,486
-------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
- ------------- -------------
INSURANCE - 4.0%
50,000,000 American Insurance $ 49,958,833
Group,
1.56%, 10/20/04
50,000,000 American Insurance 49,956,667
Group,
1.56%, 10/21/04
50,000,000 Marsh & McLennan, 49,959,500
1.62%, 10/19/04
86,000,000 Prudential Funding 85,978,070
Corp., 1.53%, 10/7/04
80,000,000 Prudential Funding 79,912,222
Corp., 1.58%, 10/26/04 -------------
315,765,292
-------------
MANUFACTURING - 1.6%
33,000,000 BMW US Capital LLC, 33,000,000
1.86%, 10/1/04
59,900,000 PACCAR Financial 59,792,845
Corp., 1.61%, 11/10/04
32,000,000 PACCAR Financial 31,877,049
Corp., 1.82%, 12/16/04 -------------
124,669,894
-------------
PHARMACEUTICALS - 1.0%
18,150,000 Pfizer, Inc., 18,123,047
1.63%, 11/3/04
58,500,000 Pfizer, Inc., 58,255,487
1.84%, 12/22/04 -------------
76,378,534
-------------
RETAIL - 0.8%
66,900,000 Wal-Mart Stores Inc., 66,827,060
1.57%, 10/26/04 -------------
TOTAL COMMERCIAL PAPER 4,314,513,620
-------------
CERTIFICATES OF DEPOSIT - 25.5%
BANKS - CANADA - 3.6%
75,000,000 Bank of Montreal, 75,000,000
1.66%, 10/21/04
100,000,000 Canadian Imperial Bank, 100,000,000
1.82%, 12/20/04
30,000,000 Canadian Imperial Bank, 29,999,773
1.78%, 1/24/05, (b)
80,000,000 Toronto Dominion Bank, 80,000,000
1.52%, 10/6/04 -------------
284,999,773
-------------
BANKS - DOMESTIC - 14.4%
30,000,000 Bank of New York, 30,000,314
1.78%, 12/16/04
30,000,000 Bank of New York, 29,995,825
1.74%, 5/20/05, (b)
35,000,000 Chase Manhattan Bank, 35,000,000
1.65%, 11/8/04, (b)
28
================================================================================
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
Tamarack Prime Money Market Fund (cont.)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
- ------------- --------------
80,000,000 Citibank, NA, $ 80,000,000
1.54%, 10/25/04
96,000,000 First Tennessee Bank, 96,000,000
1.54%, 11/15/04
100,000,000 First Tennessee Bank, 100,000,000
1.84%, 12/21/04
80,000,000 Marshall & Ilsley, 80,000,000
1.66%, 11/22/04
65,000,000 Marshall & Ilsley, 65,000,000
1.81%, 12/20/04
100,000,000 Regions Bank, 100,000,000
1.65%, 11/24/04
95,000,000 US Bancorp, 95,012,299
1.84%, 3/11/05, (b)
100,000,000 Washington Mutual 100,000,000
Bank, 1.79%, 12/14/04
100,000,000 Washington Mutual 100,000,000
Bank, 1.87%, 12/17/04
50,000,000 Wells Fargo Bank, 50,000,000
1.73%, 7/15/05, (b)
95,000,000 World Savings Bank, 94,997,580
1.68%, 11/16/04
75,000,000 World Savings Bank, 74,997,220
1.77%, 12/7/04 --------------
1,131,003,238
--------------
BANKS - FOREIGN - 7.5%
100,000,000 Abbey National 99,995,593
Treasury,
1.74%, 11/19/04, (b)
70,000,000 ABN-AMRO, 70,000,000
1.87%, 12/23/04
30,000,000 Barclays Bank PLC, 29,999,370
1.65%, 11/8/04, (b)
50,000,000 Barclays Bank PLC, 49,998,264
1.60%, 12/3/04, (b)
100,000,000 Deutsche Bank, 100,000,000
1.58%, 10/19/04
78,000,000 Deutsche Bank, 78,000,000
1.80%, 12/9/04
100,000,000 UBS AG Stamford, 99,997,991
1.48%, 11/19/04
66,000,000 Westdeutsche 65,855,671
Landesbank, --------------
1.68%, 11/17/04
593,846,889
--------------
TOTAL CERTIFICATES OF DEPOSIT 2,009,849,900
--------------
U.S. GOVERNMENT AGENCY OBLIGATIONS - 12.2%
FEDERAL HOME LOAN BANK - 4.4%
40,000,000 1.68%, 10/6/04 39,991,667
41,000,000 1.25%, 10/20/04 40,998,370
55,000,000 1.60%, 10/29/04 54,931,556
43,575,000 4.13%, 11/15/04 43,716,481
45,000,000 1.47%, 2/28/05 45,000,000
SHARES OR
PRINCIPAL
AMOUNT VALUE
- ------------- --------------
40,000,000 1.50%, 3/1/05 $ 40,000,000
80,000,000 1.55%, 5/6/05 80,000,000
-------------
344,638,074
-------------
FEDERAL HOME LOAN MORTGAGE
CORPORATION - 1.8%
53,528,000 1.58%, 10/26/04 53,469,268
65,000,000 1.62%, 11/9/04 64,888,741
22,000,000 1.70%, 11/30/04 21,937,667
-------------
140,295,676
-------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 6.0%
20,000,000 1.53%, 10/20/04 19,983,850
80,000,000 1.65%, 10/22/04 79,923,000
88,000,000 1.23%, 10/27/04 87,900,218
90,000,000 1.60%, 11/3/04 89,868,000
58,000,000 1.71%, 12/1/04 57,831,945
62,000,000 1.85%, 12/22/04 61,738,739
80,450,000 1.81%, 5/27/05 80,450,000
-------------
477,695,752
-------------
TOTAL U.S. GOVERNMENT AGENCY
962,629,502
-------------
OBLIGATIONS
CORPORATE BONDS - 7.0%
FINANCE - AUTOMOTIVE - 1.9%
27,800,000 American Honda 27,746,694
Finance,
1.77%, 11/9/04
40,000,000 American Honda 40,000,000
Finance,
1.68%, 11/19/04, (b)
35,044,000 American Honda 34,927,070
Finance,
1.82%, 12/6/04
45,000,000 American Honda 45,015,620
Finance, -------------
2.01%, 12/9/04, (b)
147,689,384
-------------
FINANCE - DIVERSIFIED (3.8%)
50,000,000 American Express Credit 50,021,284
Corp.,
1.77%, 6/15/05, (b)
25,000,000 American Express Credit 25,008,570
Corp.,
1.77%, 7/14/05, (b)
70,000,000 American Express Credit 70,000,000
Corp.,
1.84%, 6/20/08, (b)
37,520,000 Goldman Sachs Group, 37,835,249
Inc., 6.63%, 12/1/04
20,000,000 Merrill Lynch & Co., 20,001,447
1.82%, 12/6/04, (b)
30,000,000 Merrill Lynch & Co., 30,002,170
1.82%, 12/6/04, (b)
29
================================================================================
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
Tamarack Prime Money Market Fund (cont.)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
- ------------ --------------
70,000,000 Merrill Lynch & Co., $ 70,000,000
1.74%, 2/17/05, (b) --------------
302,868,720
--------------
MANUFACTURING - 1.3%
100,000,000 Minnesota Mining & 100,862,456
Manufacturing, --------------
5.64%, 12/13/04
TOTAL CORPORATE BONDS 551,420,560
--------------
INVESTMENT COMPANIES - 0.1%
MONEY MARKET - 0.1%
5,339,808 Wells Fargo Prime 5,339,808
Investment Money --------------
Market Fund, Investor
Class
TOTAL INVESTMENT COMPANIES 5,339,808
--------------
TOTAL INVESTMENTS (Cost 7,843,753,390
$7,843,753,390) (a) - 99.5%
OTHER ASSETS IN EXCESS OF LIABILITIES 40,849,995
- - 0.5% --------------
NET ASSETS - 100.0% $7,884,603,385
==============
(a) Tax cost of securities is equal to book cost of securities.
(b) Variable rate security. The rate reflected in the Schedule of Portfolio
Investments is the rate in effect on September 30, 2004. The maturity date
represents the actual maturity date. However, for purposes of Rule 2a-7,
maturity is the next interest reset date at which time the security can be put
back to the issuer.
SEE NOTES TO FINANCIAL STATEMENTS.
30
================================================================================
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
Tamarack U.S. Government Money Market Fund
- --------------------------------------------------------------------------------
SEPTEMBER 30, 2004
SHARES OR
PRINCIPAL
AMOUNT VALUE
- -------------- -------------
U.S. GOVERNMENT AGENCY
OBLIGATIONS - 99.8%
FEDERAL HOME LOAN BANK - 35.5%
8,300,000 1.51%, 10/1/04 $ 8,300,000
3,000,000 1.68%, 10/6/04 2,999,279
25,000,000 1.54%, 10/15/04 24,985,028
5,750,000 3.63%, 10/15/04 5,754,337
10,000,000 1.59%, 10/22/04 9,990,725
56,000,000 1.58%, 10/29/04 55,931,617
6,000,000 1.58%, 11/10/04 5,989,533
11,800,000 1.76%, 11/12/04 11,775,771
33,000,000 1.60%, 11/15/04 32,934,413
8,700,000 4.13%, 11/15/04 8,728,542
40,000,000 1.64%, 11/17/04 39,916,444
53,000,000 1.61%, 11/19/04 52,879,882
5,420,000 3.88%, 12/15/04 5,442,019
5,720,000 4.00%, 2/15/05 5,761,550
15,000,000 1.47%, 2/28/05 15,000,000
28,600,000 1.54%, 4/19/05, (b) 28,594,646
20,000,000 1.55%, 5/4/05 20,000,000
-------------
334,983,786
-------------
FEDERAL HOME LOAN MORTGAGE
CORPORATION - 29.8%
20,000,000 1.45%, 10/5/04 19,996,789
46,025,000 1.51%, 10/12/04 46,003,906
44,500,000 1.56%, 10/26/04 44,452,311
40,000,000 1.62%, 10/28/04 39,952,600
29,000,000 1.63%, 11/16/04 28,939,970
4,400,000 1.71%, 11/30/04 4,387,533
35,000,000 1.77%, 12/7/04 34,885,356
9,500,000 1.76%, 12/10/04 9,467,581
40,000,000 1.79%, 12/14/04 39,853,644
14,000,000 1.85%, 2/8/05 13,907,483
812,000 1.75%, 5/15/05 810,390
-------------
282,657,563
-------------
FEDERAL NATIONAL MORTGAGE
ASSOCIATION - 34.5%
40,000,000 1.55%, 10/1/04 40,000,000
52,000,000 1.46%, 10/6/04 51,989,527
8,000,000 1.67%, 10/8/04 7,997,402
19,000,000 1.49%, 10/13/04 18,990,627
14,000,000 1.52%, 10/15/04 13,991,779
50,000,000 1.53%, 10/20/04 49,959,889
33,000,000 1.59%, 10/27/04 32,962,343
15,000,000 1.79%, 11/29/04 14,956,242
43,000,000 1.80%, 12/8/04 42,854,612
15,000,000 1.80%, 12/15/04 14,944,063
28,000,000 1.86%, 12/22/04 27,882,011
5,459,000 7.13%, 2/15/05 5,561,121
5,000,000 1.81%, 5/27/05 5,000,000
-------------
327,089,616
-------------
TOTAL U.S. GOVERNMENT AGENCY 944,730,965
OBLIGATIONS -------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
- -------------- -------------
INVESTMENT COMPANIES - 0.7%
6,811,722 Wells Fargo $ 6,811,722
Government -------------
Institutional Money
Market Fund
TOTAL INVESTMENT COMPANIES
6,811,722
-------------
TOTAL INVESTMENTS 951,542,687
(Cost $951,542,687) (a) - 100.5% -------------
LIABILITIES IN EXCESS OF OTHER (4,533,915)
ASSETS - (0.5)% -------------
NET ASSETS - 100.0% $947,008,772
=============
(a) Tax cost of securities is equal to book cost of securities.
(b) Variable rate security. The rate reflected in the Schedule of Portfolio
Investments is the rate in effect on September 30, 2004. The maturity date
represents the actual maturity date. However, for purposes of Rule 2a-7,
maturity is the next interest reset date at which time the security can be put
back to the issuer.
SEE NOTES TO FINANCIAL STATEMENTS.
31
================================================================================
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
Tamarack Tax-Free Money Market Fund
- --------------------------------------------------------------------------------
SEPTEMBER 30, 2004
SHARES OR
PRINCIPAL
AMOUNT VALUE
- -------------- ----------
MUNICIPAL BONDS - 91.1%
ALABAMA - 1.6%
2,400,000 City of Birmingham, $2,400,000
1.72%, 10/1/15,
(AMBAC Insured) (b)
2,050,000 Mobile GO, 2,042,260
0.00%, 2/15/05, (MBIA
Insured)
5,200,000 Mobile Industrial 5,200,000
Development Board
Dock & Wharf Revenue,
1.66%, 6/1/32, (LOC
Bayerische
Landesbank) (b)
3,265,000 Mobile Industrial 3,265,000
Development Board
Dock & Wharf Revenue,
1.69%, 6/1/32, (LOC
Wachovia Bank) (b)
2,345,000 University of Alabama 2,345,000
Revenue, ----------
1.61%, 9/1/31,
(AMBAC Insured) (b)
15,252,260
----------
ALASKA - 0.5%
5,100,000 North Slope Boro, 5,038,426
0.00%, 6/30/05, (FSA ----------
Insured)
ARIZONA (1.6%)
11,600,000 Apache County IDR, 11,600,000
1.75%, 12/15/18, (LOC
Credit Suisse First
Boston) (b)
1,110,000 Glendale Arizona IDR, 1,110,000
1.71%, 12/1/14, (LOC
Wells Fargo Bank) (b)
3,000,000 Phoenix IDA, 3,000,000
1.72%, 10/1/29, ----------
(FHLMC Insured) (b)
15,710,000
----------
CALIFORNIA - 8.1%
800,000 City of Irvine Ranch 800,000
Water District,
1.73%, 8/1/16, (LOC
Landesbank) (b)
SHARES OR
PRINCIPAL
AMOUNT VALUE
- -------------- ----------
470,000 Irvine Improvement $ 470,000
Bond, 1.73%, 9/2/25,
(LOC Bank of
America) (b)
5,600,000 Los Angeles Regional 5,600,000
Airports (LAX),
1.70%, 12/1/25, (LOC
Societe Generale) (b)
10,900,000 Los Angeles Unified 10,900,000
School District (Belmont
Learning Complex),
1.63%, 12/1/17, (LOC
Bank of New York) (b)
15,500,000 Orange County 15,500,000
Apartment
Development Revenue
(Bear Brand
Apartments), 1.66%,
11/1/07, (LOC Freddie
Mac) (b)
11,700,000 Orange County 11,700,000
Development Revenue
(Seaside Meadow),
1.66%, 8/1/08, (LOC
Freddie Mac) (b)
7,500,000 Southern California 7,500,000
Public Power,
1.67%, 7/1/17,
(AMBAC Insured) (b)
6,500,000 State Department Water 6,500,000
Reservoir Revenue,
1.65%, 5/1/22, (LOC
Landesbank
Hessen-Thuringen) (b)
2,800,000 State GO, 2,800,000
1.73%, 5/1/33, (LOC
Westlandesbank) (b)
15,000,000 Statewide Communities 15,000,000
Development Authority
Events (Motion Picture
& TV), 1.63%, 3/1/31,
(LOC BNP Paribas) (b)
1,700,000 Statewide IDA, 1,700,000
1.66%, 8/15/32, ----------
(AMBAC Insured) (b)
78,470,000
----------
32
================================================================================
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
Tamarack Tax-Free Money Market Fund (cont.)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
- -------------- ----------
COLORADO - 4.5%
3,400,000 Adams County IDR, $3,400,000
1.69%, 11/1/08, (LOC
Citigroup) (b)
1,000,000 Aurora Centretech 1,000,000
Metro District,
1.30%, 12/1/28, (LOC
Banque Nationale
Paris) (b)
1,430,000 Colorado Springs 1,430,000
Revenue (Pikes Peak
Mental Health),
1.71%, 3/15/23, (LOC
Wells Fargo Bank) (b)
3,900,000 Douglas County MFHR 3,900,000
(Autumn Chase),
1.69%, 12/1/29, (LOC
Freddie Mac) (b)
3,105,000 Interstate South Metro 3,105,000
District,
1.20%, 11/1/13, (LOC
Banque Nationale de
Paris) (b)
1,120,000 Jefferson County 1,120,000
Revenue,
1.71%, 6/1/10, (LOC
Wells Fargo Bank) (b)
2,310,000 NBC Metropolitan 2,310,000
District,
1.79%, 12/1/30, (LOC
U.S. Bank) (b)
7,400,000 Pinery West Metro 7,400,000
District,
1.20%, 12/1/32, (LOC
U.S. Bank) (b)
300,000 State Educational & 300,000
Cultural Facilities
Authority (Regis Jesuit
High School), 1.71%,
12/1/33, (LOC Wells
Fargo Bank) (b)
1,505,000 State Educational & 1,505,000
Cultural Facilities
Authority (Rocky
Mountain Shambhala
Center), 1.71%, 1/1/21,
(LOC Wells Fargo
Bank) (b)
SHARES OR
PRINCIPAL
AMOUNT VALUE
- -------------- ----------
1,250,000 State Health Facilities $1,250,000
Authority Revenue
(Arapahoe House
Project), 1.76%, 4/1/24,
(LOC Wells Fargo) (b)
11,500,000 State Health Facilities 11,500,000
Authority Revenue
(Exempla),
1.61%, 1/1/33, (LOC
U.S. Bank) (b)
2,047,000 State Health Facilities 2,047,000
Authority Revenue
(North Colorado
Medical Center),
1.61%, 5/15/20, (MBIA
Insured) (b)
730,000 State Health Facilities 730,000
Authority Revenue (The
Visiting Nurse Corp.),
1.75%, 7/1/22, (LOC
Wells Fargo Bank) (b)
2,290,000 Willow Trace Metro 2,290,000
District, ----------
1.55%, 12/1/31, (LOC
U.S. Bank) (b)
43,287,000
----------
DISTRICT OF COLUMBIA - 0.9%
4,145,000 District Revenue Pooled 4,145,000
Loan, 1.70%, 1/1/29,
(LOC Bank of
America) (b)
4,400,000 Series D GO, 4,400,000
1.70%, 6/1/31, (MBIA ----------
Insured) (b)
8,545,000
----------
FLORIDA - 8.4%
5,300,000 Alachua County Health 5,300,000
Facilities Authority,
1.60%, 12/1/26, (MBIA
Insured) (b)
9,200,000 Brevard County 9,200,000
Educational Facilities
Authority,
1.70%, 7/1/32, (LOC
Bank of America) (b)
33
================================================================================
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
Tamarack Tax-Free Money Market Fund (cont.)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
- -------------- ----------
6,100,000 Collier County Health $6,100,000
Facilities Authority (The
Moorings Inc.), 1.69%,
12/1/24, (LOC Wachovia
Bank) (b)
3,600,000 Dade County Water & 3,600,000
Sewer Systems
Revenue,
1.66%, 10/5/22, (FGIC
Insured) (b)
1,655,000 Hollywood Water & 1,655,000
Sewer Revenue,
2.00%, 10/1/04, (FSA
Insured)
3,270,000 Housing Finance 3,270,000
Agency, 1.60%, 7/1/07,
(LOC Freddie Mac) (b)
4,025,000 Jacksonville Health 4,025,000
Facilities Authority
Hospital Revenue,
1.65%, 8/15/19, (MBIA
Insured) (b)
290,000 Orange County School 290,000
Board, 1.73%, 8/1/25,
(AMBAC Insured) (b)
3,500,000 Palm Beach County 3,500,000
Housing Finance
Authority,
1.69%, 11/1/07, (LOC
Credit Suisse First
Boston) (b)
8,500,000 Polk County School 8,500,000
Board, 1.68%, 1/1/28,
(FSA Insured) (b)
2,480,000 St. John's County IDA 2,480,000
Health Care (Glenmore
St. John's),
1.69%, 1/1/07, (LOC
LaSalle Bank) (b)
4,000,000 St. Johns County 4,000,000
Housing Finance
Authority,
1.68%, 2/15/28, (LOC
FNMA) (b)
2,760,000 State Housing Financial 2,760,000
Agency,
1.60%, 12/1/05,
(FHLMC Insured) (b)
22,525,000 University of South 22,525,000
Florida,
1.63%, 10/1/33, (LOC
Wachovia Bank) (b)
SHARES OR
PRINCIPAL
AMOUNT VALUE
- -------------- ----------
5,000,000 West Orange Health $5,000,000
District Revenue, ----------
1.72%, 2/1/22, (LOC
Suntrust Bank) (b)
82,205,000
----------
GEORGIA - 6.1%
5,800,000 Clayton County MFHR 5,800,000
(BS Partners),
1.69%, 9/1/26, (LOC
Fannie Mae) (b)
1,000,000 DeKalb County 1,000,000
Development Authority
Revenue,
1.69%, 6/1/20, (LOC
Wachovia Bank) (b)
6,475,000 DeKalb County Housing 6,475,000
Authority Revenue,
1.70%, 1/1/34, (LOC
FHLMC) (b)
1,500,000 DeKalb Private Hospital 1,500,000
Authority (Children's
Health Care Project),
1.69%, 12/1/17, (LOC
Suntrust Bank) (b)
2,100,000 DeKalb Private Hospital 2,100,000
Authority (Children's
Health Care Project),
1.69%, 12/1/28, (LOC
Suntrust Bank) (b)
2,100,000 DeKalb Private Hospital 2,100,000
Authority (Egleston
Children's Hospital),
1.69%, 3/1/24, (LOC
Suntrust Bank) (b)
6,000,000 Downtown Savannah 6,000,000
Authority Revenue,
1.69%, 10/1/07, (LOC
Wachovia Bank) (b)
5,000,000 Fulco Hospital Authority 5,000,000
Revenue,
1.69%, 9/1/17, (LOC
Wachovia Bank) (b)
5,300,000 Marietta MFHR, 5,300,000
1.69%, 5/15/07, (FNMA
Collateralized) (b)
9,525,000 Marietta MFHR, 9,525,000
1.68%, 7/1/24, (FNMA
Collateralized) (b)
34
================================================================================
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
Tamarack Tax-Free Money Market Fund (cont.)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
- -------------- ----------
3,345,000 Metropolitan Atlanta $3,345,000
Rapid Transit Authority,
1.68%, 7/1/25, (LOC
Bayerische
Landesbank) (b)
4,000,000 State Municipal Electric 4,000,000
Authority,
1.68%, 1/1/16, (FSA
Insured) (b)
7,175,000 State Municipal Electric 7,175,000
Authority, ----------
1.68%, 1/1/20, (LOC
Bayerische
Landesbank) (b)
59,320,000
----------
IDAHO - 1.4%
3,595,000 Magic Valley Healthcare 3,595,000
Systems, Inc.,
1.71%, 12/1/21, (LOC
Wells Fargo Bank) (b)
1,900,000 State Health Facilities 1,900,000
Revenue (St. Luke's
Medical Center),
1.72%, 5/1/22, (LOC
Harris Trust & Savings
Bank) (b)
7,710,000 State Health Facilities 7,710,000
Revenue (St. Luke's ----------
Medical Center),
1.70%, 7/1/30, (FSA
Insured) (b)
13,205,000
----------
ILLINOIS - 5.4%
9,025,000 City of Elmhurst 9,025,000
Revenue,
1.70%, 7/1/18, (LOC
Dexia Credit Local) (b)
4,700,000 Galesburg Revenue 4,700,000
(Knox College),
1.78%, 3/1/31, (LOC
LaSalle Bank) (b)
4,100,000 Jackson Union 4,100,000
Counties,
1.64%, 4/1/24, (LOC
Wachovia Bank) (b)
4,000,000 State Development 4,000,000
Finance Authority PCR,
1.70%, 9/1/08, (LOC
Bank One) (b)
SHARES OR
PRINCIPAL
AMOUNT VALUE
- -------------- ----------
1,100,000 State Development $1,100,000
Finance Authority PCR,
1.74%, 11/1/12,
(Obligor Amoco Oil
Co.) (b)
3,800,000 State Development 3,800,000
Finance Authority
Revenue,
1.66%, 5/1/28, (MBIA
Insured) (b)
1,000,000 State Health Facilities 1,001,120
Authority Revenue
(Hospital Sisters
Services), 2.00%,
12/1/04, (FSA Insured)
3,570,000 State Health Facilities 3,570,000
Authority Revenue
(Loyola University
Health System),
1.66%, 7/1/24, (MBIA
Insured) (b)
6,300,000 State Health Facilities 6,300,000
Authority Revenue
(Resurrection Health
Care), 1.71%, 5/15/29,
(FSA Insured) (b)
2,900,000 State Health Facilities 2,900,000
Authority Revenue
(Southern Illinois
Healthcare Inc.),
1.70%, 3/1/31, (LOC
Firstar Bank) (b)
8,500,000 State Toll Highway 8,500,000
Authority Revenue,
1.66%, 1/1/10, (MBIA
Insured) (b)
3,500,000 State Toll Highway 3,500,000
Authority Revenue, ----------
1.75%, 1/1/17, (FSA
Insured) (b)
52,496,120
----------
INDIANA - 0.4%
2,110,000 State Health Facilities 2,110,000
Finance Authority
Revenue (Anthony
Wayne Rehabilitation
Center), 1.71%, 2/1/31,
(LOC Wells Fargo
Bank) (b)
35
================================================================================
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
Tamarack Tax-Free Money Market Fund (cont.)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
- -------------- -----------
200,000 State Health Facilities $ 200,000
Finance Authority
Revenue (Capital Access
Designated Pool),
1.67%, 1/1/12, (LOC
Comerica Bank) (b)
1,205,000 State Health Facilities 1,205,000
Finance Authority
Revenue (Capital Access
Designated Pool),
1.67%, 4/1/12, (LOC
Comerica Bank) (b)
190,000 State Health Facilities 190,000
Finance Authority
Revenue (Capital Access
Designated Pool),
1.67%, 1/1/16, (LOC
Comerica Bank) (b)
350,000 State Health Facilities 350,000
Finance Authority -----------
Revenue (Deaconess
Hospital), 1.69%,
1/1/22, (LOC Fifth Third
Bank) (b)
4,055,000
-----------
IOWA - 6.1%
1,400,000 Hills Healthcare 1,400,000
Revenue,
1.72%, 8/1/32, (LOC
U.S. Bank) (b)
6,600,000 Iowa Higher Education, 6,600,000
1.71%, 11/1/16, (LOC
Wells Fargo Bank) (b)
915,000 Iowa Higher Education, 915,000
1.72%, 11/1/30, (LOC
LaSalle Bank) (b)
3,690,000 State Finance Authority 3,690,000
Revenue (Diocese of
Sioux City Project),
1.71%, 3/1/19, (LOC
Wells Fargo Bank) (b)
2,405,000 State Finance Authority 2,405,000
Revenue (Mississippi
Valley Regional Blood
Center), 1.71%, 2/1/23,
(LOC Wells Fargo
Bank) (b)
SHARES OR
PRINCIPAL
AMOUNT VALUE
- -------------- -----------
1,500,000 State Finance Authority $ 1,500,000
Revenue (Private
Colleges),
1.72%, 7/1/24, (LOC
Wells Fargo) (b)
3,370,000 State Finance Authority 3,370,000
Revenue (Putnam
Museum of History),
1.71%, 5/1/12, (LOC
Wells Fargo Bank) (b)
7,400,000 State Finance Authority 7,400,000
Revenue (Small Business
Development),
1.71%, 11/1/15, (LOC
E.I. Dupont) (b)
2,685,000 State Finance Authority 2,685,000
Revenue (YMCA &
Rehabilitation Center),
1.75%, 4/1/25, (LOC
Bank of America) (b)
8,335,000 State Higher Education 8,335,000
Authority Revenue
(Palmer Chiropractic),
1.71%, 4/1/27, (LOC
LaSalle Bank) (b)
14,220,000 State School 14,366,978
Corporations,
3.00%, 6/30/05, (FSA
Insured)
2,290,000 Webster County 2,290,000
Educational Facilities
Revenue,
1.71%, 7/1/20, (LOC
Wells Fargo Bank) (b)
3,910,000 Woodbury County 3,910,000
(Siouxland Regional -----------
Cancer Center),
1.71%, 12/1/14, (LOC
Wells Fargo Bank) (b)
58,866,978
-----------
KENTUCKY - 0.3%
2,505,000 Breckinridge County 2,505,000
Lease Program Revenue, -----------
1.65%, 12/1/29, (LOC
U.S. Bank) (b)
36
================================================================================
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
Tamarack Tax-Free Money Market Fund (cont.)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
- -------------- -----------
LOUISIANA - 1.1%
500,000 East Baton Rouge PCR, $ 500,000
1.67%, 11/1/19,
(Obligor Exxon Mobil
Corp.) (b)
2,800,000 Lake Charles Harbor & 2,800,000
Revenue (Conoco Inc.),
1.71%, 9/1/29, (LOC
Bank One) (b)
1,950,000 South Louisiana Port 1,950,000
Commission (Marine
Terminal),
1.67%, 7/1/21, (LOC
Bayerische
Landesbank) (b)
4,105,000 State Offshore Terminal 4,105,000
Authority Deepwater
Port Revenue (Loop LLC
Project),
1.69%, 10/1/19, (LOC
Bank One) (b)
1,600,000 State Public Facilities 1,600,000
Authority, -----------
1.72%, 12/1/15, (LOC
Bank of America) (b)
10,955,000
-----------
MAINE - 1.1%
3,475,000 State Health & Higher 3,475,000
Education (Bowdoin
College),
1.64%, 7/1/25, (LOC
State Street Bank) (b)
7,000,000 State Tax Anticipation 7,072,394
Notes, 3.00%, 6/30/05 -----------
10,547,394
-----------
MARYLAND - 1.7%
13,050,000 Montgomery County 13,050,000
Housing Opportunities
MFHR (Oakwood
Apartments),
1.68%, 11/1/07, (LOC
FHLMC) (b)
3,000,000 State Health & Higher 3,000,000
Educational Facilities, -----------
1.69%, 4/1/35, (LOC
First National Bank) (b)
16,050,000
-----------
SHARES OR
PRINCIPAL
AMOUNT VALUE
- -------------- -----------
MASSACHUSETTS - 2.9%
2,150,000 State Health & $ 2,150,000
Educational Facilities
Authority Revenue,
1.59%, 10/1/27, (MBIA
Insured) (b)
600,000 State Health & 600,000
Educational Facilities
Authority Revenue
(Capital Assets
Program),
1.65%, 1/1/19, (MBIA
Insured) (b)
3,000,000 State Health & 3,000,000
Educational Facilities
Authority Revenue
(Capital Assets
Program),
1.61%, 12/1/29, (LOC
State Street B&T) (b)
1,200,000 State Health & 1,200,000
Educational Facilities
Authority Revenue
(Capital Assets
Program),
1.72%, 1/1/35, (MBIA
Insured) (b)
18,565,000 State Water Resource 18,565,000
Authority,
1.65%, 8/1/23, (FGIC
Insured) (b)
2,600,000 State Water Resource 2,600,000
Authority, -----------
1.69%, 11/1/26, (FGIC
Insured) (b)
28,115,000
-----------
MICHIGAN - 3.2%
7,200,000 City of Detroit Sewer 7,200,000
Disposal Revenue,
1.58%, 7/1/23, (MBIA
Insured) (b)
1,805,000 City of Detroit Sewer 1,805,000
Disposal Revenue,
1.72%, 7/1/29, (MBIA
Insured) (b)
1,200,000 Eastern Michigan 1,200,000
University,
1.72%, 6/1/27, (FGIC
Insured) (b)
37
================================================================================
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
Tamarack Tax-Free Money Market Fund (cont.)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
- -------------- -----------
355,000 Ingham County $ 355,000
Economic Development
(Martin Luther),
1.70%, 4/1/22, (LOC
Bank One) (b)
6,400,000 State Anticipation 6,400,000
Notes, 1.68%, 9/15/08,
(FSA Insured) (b)
1,680,000 State Housing 1,680,000
Development Authority
(Rental Housing),
1.70%, 4/1/24, (MBIA
Insured) (b)
3,100,000 State Strategic Fund 3,100,000
(Clark Retirement),
1.70%, 6/1/31, (LOC
Fifth Third Bank) (b)
8,735,000 University of Michigan 8,735,000
Revenue, -----------
1.69%, 4/1/32, (b)
30,475,000
-----------
MINNESOTA - 3.5%
146,000 Arden Hills Housing & 146,000
Healthcare Facilities
Revenue,
1.77%, 9/1/29, (LOC
U.S. Bank) (b)
2,500,000 Brown County Revenue 2,500,000
(Martin Luther College),
1.66%, 9/1/24, (LOC
Wells Fargo) (b)
2,170,000 City of Maple Grove 2,170,000
MFHR, 1.66%, 11/1/31,
(LOC Wells Fargo
Bank) (b)
7,570,000 City of Minneapolis 7,570,000
MFHR, 1.66%, 12/1/27,
(LOC Wells Fargo
Bank) (b)
4,900,000 Litchfield Independent 4,967,305
School District,
3.00%, 9/30/05, (SD
Credit Program Insured)
1,500,000 Mendota Heights 1,500,000
Housing Mortgage
Revenue,
1.66%, 11/1/31, (LOC
Wells Fargo Bank) (b)
SHARES OR
PRINCIPAL
AMOUNT VALUE
- -------------- -----------
940,000 Minneapolis Revenue $ 940,000
(Catholic Charities
Projects),
1.69%, 11/1/16, (LOC
Wells Fargo Bank) (b)
8,000,000 St. Cloud Infrastructure 8,000,000
Management,
1.66%, 2/1/15, (LOC
Wells Fargo) (b)
2,340,000 St. Paul Housing & 2,340,000
Redevelopment
Authority Revenue
(Science Museum
Project), 1.72%, 5/1/27,
(LOC First Interstate
Bank) (b)
820,000 State Higher Education 820,000
Facilities Authority
Revenue (St. Olaf
College), 1.72%,
10/1/20, (LOC Harris
Trust & Savings
Bank) (b)
2,800,000 State Higher Education 2,800,000
Facilities Authority -----------
Revenue (William
Mitchell), 1.71%,
10/1/33, (LOC U.S.
Bank) (b)
33,753,305
-----------
MISSISSIPPI - 0.1%
600,000 Jackson County PCR, 600,000
1.73%, 6/1/23, (Obligor -----------
Chevron Corp.) (b)
MISSOURI - 0.5%
2,000,000 St. Charles County IDA, 2,000,000
1.70%, 2/1/29, (LOC
FNMA) (b)
1,595,000 State Health & 1,595,000
Educational Facilities
Authority,
1.72%, 6/1/26, (LOC
Bank of America) (b)
1,200,000 State Health & 1,200,000
Educational Facilities -----------
Authority,
1.72%, 11/1/32, (LOC
Bank of America) (b)
4,795,000
-----------
38
================================================================================
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
Tamarack Tax-Free Money Market Fund (cont.)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
- -------------- -----------
NEBRASKA - 0.4%
3,975,000 Scotts Bluff County $ 3,975,000
Hospital Authority
Revenue,
1.55%, 12/1/31, (LOC
GNMA) (b)
300,000 State Educational 300,000
Finance Authority -----------
Revenue,
1.72%, 3/1/33, (LOC
U.S. Bancorp) (b)
4,275,000
-----------
NEVADA - 0.1%
1,100,000 Clark County Airport 1,100,000
Revenue, -----------
1.66%, 7/1/25, (LOC
Westdeutsche
Landesbank) (b)
NEW HAMPSHIRE - 0.3%
985,000 State Health & 985,000
Educational Facilities
Revenue,
1.70%, 7/1/21, (LOC JP
Morgan Chase Bank) (b)
2,000,000 State Health & 2,000,000
Educational Facilities -----------
Revenue,
1.69%, 8/1/31, (FSA
Insured) (b)
2,985,000
-----------
NEW JERSEY - 0.0%
305,000 State Economic 305,000
Development Authority -----------
Revenue,
1.69%, 1/15/18, (LOC
Citibank) (b)
NEW YORK - 2.9%
5,700,000 Jay Street Development 5,700,000
Corporation State
Courts Facilities Lease
Revenue, 1.69%,
5/1/21, (LOC Toronto
Dominion Bank) (b)
SHARES OR
PRINCIPAL
AMOUNT VALUE
- -------------- -----------
10,300,000 Metropolitan $10,300,000
Transportation
Authority,
1.63%, 11/1/26,
(AMBAC Insured) (b)
1,400,000 New York City GO, 1,400,000
1.70%, 8/15/09, (MBIA
Insured) (b)
1,000,000 New York City GO, 1,000,000
1.77%, 8/1/14, (MBIA
Insured) (b)
500,000 New York City GO, 500,000
1.73%, 8/1/17, (LOC
Morgan Guaranty
Trust) (b)
940,000 New York City GO, 940,000
1.66%, 8/1/21, (LOC JP
Morgan Chase Bank) (b)
1,000,000 New York City GO, 1,000,000
1.66%, 8/15/21, (LOC
Morgan Trust) (b)
3,500,000 New York City 3,500,000
Municipal Water
Finance Authority
Revenue, 1.73%,
6/15/23, (FGIC
Insured) (b)
3,500,000 State Energy Research & 3,500,000
Development Authority -----------
PCR, 1.66%, 10/1/14,
(FGIC Insured) (b)
27,840,000
-----------
NORTH CAROLINA - 3.2%
9,365,000 Charlotte Airport 9,365,000
Revenue, Series A,
1.66%, 7/1/16, (MBIA
Insured) (b)
2,300,000 City of Greensboro 2,300,000
Enterprise System
Revenue,
1.65%, 6/1/24, (b)
2,165,000 State Educational 2,165,000
Facilities Agency
Revenue,
1.68%, 1/1/19, (LOC
Bank of America) (b)
3,100,000 State Medical Care 3,100,000
Commission Revenue,
1.69%, 10/1/16, (LOC
Wachovia Bank) (b)
39
================================================================================
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
Tamarack Tax-Free Money Market Fund (cont.)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
- -------------- -----------
13,600,000 State Medical Care $13,600,000
Commission Revenue, -----------
1.66%, 11/1/32, (LOC
Suntrust Bank) (b)
30,530,000
-----------
NORTH DAKOTA - 0.2%
1,575,000 Ward County Health 1,575,000
Care Facilities Revenue -----------
(Trinity Group),
1.77%, 7/1/29, (LOC
U.S. Bank) (b)
OHIO - 1.2%
2,665,000 Franklin County 2,665,000
Hospital Revenue
(OhioHealth),
1.69%, 12/1/28, (LOC
National City Bank) (b)
8,619,000 Warren County Health 8,619,000
Care Facilities Revenue -----------
(Otterbein Homes
Project), 1.73%, 7/1/23,
(LOC Fifth Third
Bank) (b)
11,284,000
-----------
OREGON - 1.0%
5,415,000 State Health & 5,415,000
Education Revenue,
1.72%, 12/1/15, (LOC
U.S. Bank) (b)
4,000,000 Tri-County Metropolitan 4,000,000
Transportation District, -----------
1.72%, 12/1/21, (LOC
Bayerische
Landesbank) (b)
9,415,000
-----------
PENNSYLVANIA - 1.4%
2,500,000 Delaware Valley Finance 2,500,000
Authority,
1.69%, 12/1/20, (LOC
Toronto Dominion) (b)
400,000 Emmaus General 400,000
Authority Revenue,
1.73%, 3/1/24, (LOC
Goldman Sachs) (b)
SHARES OR
PRINCIPAL
AMOUNT VALUE
- -------------- -----------
10,300,000 Montgomery County $10,300,000
Redevelopment
Authority,
1.69%, 8/15/31, (LOC
FNMA) (b)
475,000 Schuylkill County IDA, 475,000
1.72%, 12/1/22, (LOC -----------
Dexia Group) (b)
13,675,000
-----------
RHODE ISLAND - 0.5%
4,350,000 State Health & 4,350,000
Education Building -----------
Corporation,
1.64%, 7/1/31, (LOC
Bank of New York) (b)
SOUTH CAROLINA - 1.7%
2,800,000 Florence County 2,800,000
Hospital Revenue
(McLeod Regional
Medical Center),
1.72%, 11/1/15, (FGIC
Insured) (b)
3,900,000 State Job Development 3,900,000
Authority (Catholic
Diocese),
1.75%, 9/1/18, (LOC
Bank of America) (b)
1,090,000 State Job Development 1,090,000
Authority (Orangeburg
Regional Medical
Center), 1.66%,
2/15/28, (AMBAC
Insured) (b)
8,600,000 State MFHR (Charleston 8,600,000
Rental Housing), -----------
1.69%, 8/1/31, (FHLMC
Insured) (b)
16,390,000
-----------
SOUTH DAKOTA - 0.3%
2,810,000 Lower Brule Sioux Tribe, 2,810,000
1.71%, 12/1/11, (LOC -----------
Wells Fargo Bank) (b)
40
================================================================================
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
Tamarack Tax-Free Money Market Fund (cont.)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
- -------------- -----------
TENNESSEE - 1.6%
4,090,000 Clarksville Public $ 4,090,000
Building Authority
Revenue,
1.70%, 11/1/27, (LOC
Bank of America) (b)
1,100,000 Hamilton County IDR 1,100,000
(Aquarium),
1.70%, 3/1/15, (LOC
Bank of America) (b)
6,500,000 Jackson Energy 6,500,000
Authority Wastewater
Systems Revenue,
1.70%, 12/1/22, (FSA
Insured) (b)
3,305,000 Metropolitan 3,305,000
Government Nashville & -----------
Davidson County,
1.70%, 8/1/18, (LOC
Bank of America) (b)
14,995,000
-----------
TEXAS - 7.1%
1,050,000 Austin County Industrial 1,050,000
Development
Corporation,
1.69%, 12/1/14, (LOC
Bank One) (b)
2,300,000 Bexar County Housing 2,300,000
Financial Authority,
1.72%, 9/15/26, (LOC
FNMA) (b)
2,720,000 City of Brownsville 2,720,000
Utility Systems Revenue,
1.70%, 9/1/27, (MBIA
Insured) (b)
5,000,000 City of Dallas Regulated 5,018,738
Apartment Revenue,
5.50%, 11/1/04, (MBIA
Insured)
8,065,000 Gulf Coast IDA, 8,065,000
1.25%, 6/1/25, (Obligor
BP Amoco) (b)
3,400,000 Gulf Coast Waste 3,400,000
Disposal Authority
Control Revenue,
1.61%, 10/1/24,
(Obligor BP Amoco) (b)
SHARES OR
PRINCIPAL
AMOUNT VALUE
- -------------- -----------
3,300,000 Harris County Health $ 3,300,000
Facilities Authority
Revenue,
1.22%, 10/13/04,
(MBIA Insured) (b)
975,000 Harris County Health 975,000
Facilities Authority
Revenue,
1.75%, 10/1/29, (MBIA
Insured) (b)
1,000,000 Harris County Industrial 1,000,000
Development
Corporation PCR,
1.61%, 3/1/24, (Obligor
Exxon Mobil Corp.) (b)
1,700,000 San Antonio Health 1,700,000
Facilities Authority
Revenue (Clinical
Foundation Project),
1.71%, 6/1/20, (LOC
Wells Fargo Bank) (b)
1,100,000 Splendora Higher 1,100,000
Education Facilities
Revenue,
1.71%, 12/1/26, (LOC
Wells Fargo) (b)
6,700,000 State Public Finance 6,669,619
Authority Revenue,
0.00%, 2/1/05, (MBIA
Insured)
1,615,000 State Public Finance 1,615,000
Authority Revenue,
5.75%, 10/1/11, (MBIA
Insured)
25,000,000 State Tax & Revenue 25,315,013
Anticipation Notes,
3.00%, 8/31/05
4,000,000 Tarrant County Housing 4,000,000
Finance Corp. Revenue, -----------
1.68%, 2/15/28, (FNMA
Insured) (b)
68,228,370
-----------
UTAH - 2.5%
3,500,000 Intermountain Power 3,500,000
Agency Power Supply
Revenue,
1.24%, 7/1/18,
(AMBAC Insured) (b)
41
================================================================================
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
Tamarack Tax-Free Money Market Fund (cont.)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
- -------------- -----------
2,505,000 Provo Municipal $ 2,505,000
Building Authority
Lease, 1.71%, 5/1/12,
(LOC Wells Fargo
Bank) (b)
12,545,000 Salt Lake City Revenue, 12,545,000
1.71%, 12/1/21, (LOC
Wells Fargo) (b)
5,400,000 South Jordan Municipal 5,400,000
Building Authority Lease -----------
Revenue,
1.71%, 2/1/29, (LOC
BNP Paribas) (b)
23,950,000
-----------
VIRGINIA - 0.8%
3,170,000 Alexandria IDA (Pooled 3,170,000
Loan Project),
1.70%, 7/1/26, (LOC
Bank of America) (b)
2,390,000 Hampton 2,390,000
Redevelopment &
Housing Authority
MFHR (Shoreline
Apartments Project),
1.68%, 12/1/19,
(FHLMC Insured) (b)
1,380,000 Louisa County IDA, 1,380,000
1.70%, 1/1/20, (LOC
Bank of America) (b)
1,000,000 Peninsula Ports 1,000,000
Authority Coalition -----------
Term Revenue
(Dominion Term
Project), 1.66%, 7/1/16,
(LOC Citibank) (b)
7,940,000
-----------
WASHINGTON - 4.5%
4,500,000 Seattle Water System 4,500,000
Revenue,
1.56%, 9/1/25, (LOC
Bayerische
Landesbank) (b)
6,000,000 Snohomish County 6,000,000
Public Utility,
1.68%, 12/1/19, (FSA
Insured) (b)
SHARES OR
PRINCIPAL
AMOUNT VALUE
- -------------- -----------
4,700,000 State Housing & $ 4,700,000
Finance Commission
(Evergreen School
Project), 1.71%, 7/1/28,
(LOC Wells Fargo
Bank) (b)
3,500,000 State Housing & 3,500,000
Finance Commission
(Pioneer Human
Services), 1.75%, 8/1/19,
(LOC U.S. Bank) (b)
1,100,000 State Housing & 1,100,000
Finance Commission
(Riverview Retirement
Project), 1.74%, 7/1/22,
(LOC U.S. Bank) (b)
4,500,000 State Housing & 4,500,000
Finance Commission
(Rockwood Retirement
Home), 1.75%, 1/1/30,
(LOC Wells Fargo
Bank) (b)
1,000,000 State Housing & 1,000,000
Finance Commission
Nonprofit Housing
Revenue (Christa
Ministries),
1.74%, 7/1/11, (LOC
U.S. Bank) (b)
1,000,000 State Housing & 1,000,000
Finance Commission
Nonprofit Revenue
(Overlake School
Project),
1.71%, 10/1/29, (LOC
Wells Fargo Bank) (b)
1,900,000 State Housing Finance 1,900,000
Commission Nonprofit
Revenue,
1.64%, 12/1/23, (LOC
Bank of America) (b)
6,205,000 State Public Power 6,205,000
Supply, 1.66%, 7/1/12,
(MBIA Insured) (b)
9,190,000 State Public Power 9,190,000
Supply, 1.68%, 7/1/18, -----------
(LOC JP Morgan Chase
Bank) (b)
43,595,000
-----------
42
================================================================================
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
Tamarack Tax-Free Money Market Fund (cont.)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
- -------------- -----------
WISCONSIN - 1.8%
2,700,000 State Health & $ 2,700,000
Educational Facilities
Authority Revenue
(Gundersen Lutheran),
1.72%, 12/1/15, (FSA
Insured) (b)
200,000 State Health & 200,000
Educational Facilities
Authority Revenue
(Gundersen Lutheran),
1.72%, 12/1/29, (FSA
Insured) (b)
650,000 State Health & 650,000
Educational Facilities
Authority Revenue
(Meriter Hospital),
1.77%, 12/1/32, (LOC
Marshall & Ilsley
Bank) (b)
1,600,000 State Health & 1,600,000
Educational Facilities
Authority Revenue
(ProHealth Inc.), 1.72%,
8/15/30, (AMBAC
Insured) (b)
1,100,000 State Health & 1,100,000
Educational Facilities
Authority Revenue (St.
John's United Church),
1.72%, 2/1/30, (LOC
Firstar Bank) (b)
4,000,000 State Health & 4,000,000
Educational Facilities
Authority Revenue
(University of Wisconsin
Medical Foundation),
1.64%, 5/1/30, (LOC
LaSalle Bank) (b)
7,400,000 State Health & 7,400,000
Educational Facilities -----------
Authority Revenue
(Wheaton Franciscan),
1.69%, 8/15/16, (FSA
Insured) (b)
17,650,000
-----------
SHARES OR
PRINCIPAL
AMOUNT VALUE
- -------------- -----------
WYOMING - 0.2%
700,000 Kemmerer PCR (Exxon $ 700,000
Project),
1.61%, 11/1/14,
(Obligor Exxon Mobil
Corp.) (b)
550,000 Lincoln County PCR 550,000
(Exxon Project),
1.61%, 11/1/14,
(Obligor Exxon Mobil
Corp.) (b)
500,000 Sweetwater County 500,000
PCR (Pacificorp Project), -----------
1.80%, 1/1/14, (LOC
Bank One) (b)
1,750,000
-----------
TOTAL MUNICIPAL BONDS 878,888,853
-----------
COMMERCIAL PAPER - 8.9%
CALIFORNIA - 2.1%
20,000,000 Public Utilities 20,000,000
Commission of San -----------
Francisco,
1.14%, 11/9/04, (LOC
Bayerische Landesbank)
FLORIDA - 3.0%
7,500,000 Intermountain Power, 7,500,000
1.42%, 12/6/04, (LOC
Bank of Nova Scotia
and Bank of America)
5,500,000 Pinellas County 5,500,000
Educational Facilities
Authority,
1.13%, 10/18/04, (LOC
Wachovia Bank)
5,808,000 State Municipal Power 5,808,000
Agency, -----------
1.20%, 10/19/04, (LOC
Wachovia Bank)
10,000,000 State Municipal Power 10,000,000
Agency, -----------
1.40%, 11/17/04, (LOC
Wachovia Bank)
28,808,000
-----------
43
================================================================================
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
Tamarack Tax-Free Money Market Fund (cont.)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
- -------------------------------- ------------
LOUISIANA - 3.8%
14,000,000 State Public Facilities $ 14,000,000
Authority,
1.14%, 10/19/04,
(AMBAC Insured)
13,000,000 State Public Facilities 13,000,000
Authority,
1.19%, 10/19/04,
(AMBAC Insured)
10,000,000 State Public Facilities 10,000,000
Authority, ------------
1.14%, 11/2/04,
(AMBAC Insured) (b)
37,000,000
------------
TOTAL COMMERCIAL PAPER 85,808,000
------------
INVESTMENT COMPANIES - 0.3%
3,156,558 Federated Tax Exempt 3,156,558
Money Market Fund ------------
TOTAL INVESTMENT COMPANIES 3,156,558
------------
TOTAL INVESTMENTS 967,853,411
(Cost $967,853,411) (a) - 100.3%
LIABILITIES IN EXCESS OF OTHER (3,098,158)
ASSETS - (0.3)% ------------
NET ASSETS - 100.0% $964,755,253
=============
(a) Tax cost of securities is equal to book cost of securities.
(b) Variable rate security. The rate reflected in the Schedule of Portfolio
Investments is the rate in effect on September 30, 2004. The maturity date
represents the actual maturity date. However, for purposes of Rule 2a-7,
maturity is the next interest reset date at which time the security can be put
back to the issuer.
(c) Portfolio abbreviations:
AMBAC - Ambac Assurance Corporation
FGIC - Financial Guaranty Insurance Co.
FHLMC - Federal Home Loan Mortgage Corporation
FNMA - Federal National Mortgage Association
FSA - Financial Security Assurance Inc.
GO - General Obligation
IDA - Industrial Development Authority
IDR - Industrial Development Revenue
ISD - Independent School District
LOC - Letter of Credit
MBIA - MBIA Insurance Corporation
MFHR - Multi-Family Housing Revenue
PCR - Pollution Control Revenue
PSF - Permanent School Fund
SEE NOTES TO FINANCIAL STATEMENTS.
44
================================================================================
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
Tamarack Institutional Prime Money Market Fund
- --------------------------------------------------------------------------------
SEPTEMBER 30, 2004
SHARES OR
PRINCIPAL
AMOUNT VALUE
- ------------ ------------
COMMERCIAL PAPER - 67.0%
ASSET BACKED - 27.4%
28,000,000 Amsterdam Funding $ 27,951,824
Corp., 1.63%, 11/8/04
17,000,000 CXC Inc., 16,981,867
1.61%, 10/25/04
18,000,000 Edison Asset 17,975,045
Securitization,
1.73%, 11/1/04
14,000,000 Edison Asset 13,951,700
Securitization,
1.80%, 12/9/04
13,000,000 Falcon Asset 12,950,979
Securitization,
1.81%, 12/15/04
20,000,000 ING Funding LLC, 19,927,406
1.60%, 12/13/04
16,000,000 Nieuw Amsterdam 15,932,444
Receivables Corp.,
1.90%, 12/20/04
21,000,000 Preferred Receivables 20,949,647
Funding Corp.,
1.66%, 11/22/04
29,100,000 Windmill Funding 29,078,288
Corp., 1.59%, 10/18/04 ------------
175,699,200
------------
BANKS - DOMESTIC - 2.6%
16,774,000 River Fuel Co., 16,765,799
1.60%, 10/12/04 ------------
BANKS - FOREIGN - 7.1%
17,000,000 Northern Rock PLC, 16,935,003
1.86%, 12/14/04
29,000,000 UBS Finance, 28,978,500
1.57%, 10/18/04 ------------
45,913,503
------------
EDUCATION - 1.9%
12,174,000 Leyland Stanford Jr. 12,143,352
University, ------------
1.71%, 11/23/04
FINANCE - AUTOMOTIVE - 3.9%
25,000,000 Toyota Motor Credit 24,918,875
Corp., 1.77%, 12/6/04 ------------
FINANCE - DIVERSIFIED - 2.5%
16,000,000 Household Finance 15,984,880
Corp., 1.62%, 10/22/04 ------------
GOVERNMENT - DOMESTIC - 3.0%
19,500,000 Private Export Funding 19,435,764
Corp., 1.78%, 12/7/04 ------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
- ------------ ------------
HOUSEHOLD PRODUCTS - 3.1%
20,000,000 Proctor & Gamble Co., $ 19,990,000
1.50%, 10/13/04 ------------
INSURANCE - 9.9%
9,000,000 AIG Funding, Inc., 8,976,105
1.77%, 11/24/04
30,000,000 Marsh & McLennan, 29,975,700
1.62%, 10/19/04
15,000,000 Prudential Funding 14,983,542
Corp., 1.58%, 10/26/04
10,000,000 Prudential Funding 9,980,983
Corp., 1.64%, 11/12/04 ------------
63,916,330
------------
MANUFACTURING - 1.7%
11,000,000 BMW US Capital LLC, 11,000,000
1.86%, 10/1/04 ------------
PHARMACEUTICALS - 3.9%
25,000,000 Glaxosmithkline PLC, 24,935,722
1.78%, 11/22/04 ------------
TOTAL COMMERCIAL PAPER 430,703,425
------------
CORPORATE BONDS - 11.3%
FINANCE - AUTOMOTIVE - 5.0%
20,000,000 American Honda 19,961,650
Finance,
1.77%, 11/9/04
12,220,000 American Honda 12,227,997
Finance, ------------
1.70%, 7/22/05, (b)
32,189,647
------------
FINANCE - DIVERSIFIED - 6.3%
13,000,000 American Express Credit 13,005,012
Corp.,
1.96%, 12/27/04, (b)
2,500,000 Goldman Sachs Group, 2,549,122
Inc., 7.50%, 1/28/05
25,000,000 Merrill Lynch & Co., 25,034,199
1.75%, 7/1/05, (b) ------------
40,588,333
------------
TOTAL CORPORATE BONDS 72,777,980
------------
U.S. GOVERNMENT AGENCY OBLIGATIONS - 10.4%
FEDERAL HOME LOAN BANK - 8.7%
11,000,000 1.60%, 10/29/04 10,986,311
10,000,000 1.50%, 3/1/05 10,000,000
10,000,000 1.40%, 4/1/05 9,997,427
10,000,000 1.35%, 4/29/05 10,000,000
15,000,000 1.50%, 5/4/05 15,000,000
------------
55,983,738
------------
45
================================================================================
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
Tamarack Institutional Prime Money Market Fund (cont.)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
- ------------ ------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 1.7%
6,000,000 1.53%, 10/20/04 $ 5,995,187
5,000,000 1.81%, 5/27/05 5,000,000
------------
10,995,187
------------
TOTAL U.S. GOVERNMENT AGENCY 66,978,925
OBLIGATIONS ------------
CERTIFICATES OF DEPOSIT - 9.5%
BANKS - DOMESTIC - 0.1%
850,000 Harris Trust & Savings, 849,988
1.58%, 10/4/04 ------------
BANKS - FOREIGN - 9.4%
20,000,000 Bank of Scotland, 19,999,057
1.71%, 11/29/04, (b)
18,500,000 Barclays Bank PLC, 18,499,612
1.65%, 11/8/04, (b)
22,000,000 Deutsche Bank, 22,000,000
1.80%, 12/9/04 ------------
60,498,669
------------
TOTAL CERTIFICATES OF DEPOSIT 61,348,657
------------
MUNICIPAL BONDS - 1.7%
TAXABLE MUNICIPAL - 1.7%
10,705,000 State of Texas, 10,705,000
1.84%, 6/1/23, (b) ------------
TOTAL MUNICIPAL BONDS 10,705,000
------------
INVESTMENT COMPANIES - 0.8%
5,344,009 Wells Fargo Prime 5,344,009
Investment Money Market ------------
Fund, Investor Class
TOTAL INVESTMENT COMPANIES 5,344,009
------------
TOTAL INVESTMENTS 647,857,996
(Cost $647,857,996) (a) - 100.7%
LIABILITIES IN EXCESS OF OTHER (4,786,910)
ASSETS - (0.7)% ------------
NET ASSETS - 100.0% $643,071,086
============
(a) Tax cost of securities is equal to book cost of securities.
(b) Variable rate security. The rate reflected in the Schedule of Portfolio
Investments is the rate in effect on September 30, 2004. The maturity date
represents the actual maturity date. However, for purposes of Rule 2a-7,
maturity is the next interest reset date at which time the security can be put
back to the issuer.
SEE NOTES TO FINANCIAL STATEMENTS.
46
================================================================================
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
Tamarack Institutional Tax-Free Money Market Fund
- --------------------------------------------------------------------------------
SEPTEMBER 30, 2004
SHARES OR
PRINCIPAL
AMOUNT VALUE
- ------------ ------------
MUNICIPAL BONDS - 91.3%
ALABAMA - 0.8%
3,000,000 Mobile Industrial $ 3,000,000
Development Board
Dock & Wharf Revenue,
1.69%, 6/1/32, (LOC
Wachovia Bank) (b)
250,000 Stevenson Industrial 250,000
Development Board ------------
Environmental Revenue,
1.68%, 11/1/11, (LOC
JP Morgan Chase
Bank) (b)
3,250,000
------------
ALASKA - 2.0%
3,000,000 North Slope Boro, 2,963,780
0.00%, 6/30/05, (FSA
Insured)
3,225,000 Valdez Marine Terminal 3,225,000
Revenue,
1.61%, 10/1/25,
(Obligor Exxon Mobil
Corp.) (b)
1,400,000 Valdez Marine Terminal 1,400,000
Revenue, ------------
1.61%, 12/1/29,
(Obligor Exxon Mobil
Corp.) (b)
7,588,780
------------
ARIZONA - 2.0%
1,300,000 Apache County IDR, 1,300,000
1.75%, 12/15/18, (LOC
Bank of New York) (b)
1,400,000 Apache County IDR, 1,400,000
1.75%, 12/15/18, (LOC
Credit Suisse First
Boston) (b)
3,535,000 Maricopa County 3,624,076
Arizona University
School District,
5.00%, 7/1/05, (FGIC
Insured)
1,400,000 Phoenix IDA, 1,400,000
1.71%, 4/1/28, (LOC ------------
Wells Fargo Bank) (b)
7,724,076
------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
- ------------ ------------
CALIFORNIA - 7.4%
250,000 Health Care Facilities $ 250,000
Financing Authority
Revenue (Scripps
Memorial Hospital),
1.60%, 12/1/15, (MBIA
Insured) (b)
1,500,000 Irvine Improvement 1,500,000
Bond, 1.73%, 9/2/25,
(LOC Bank of
America) (b)
500,000 Irvine Ranch Water 500,000
District,
1.73%, 11/15/13, (LOC
Landesbank
Hessen-Thuringen) (b)
3,600,000 Kern Water Bank 3,600,000
Authority Revenue,
1.57%, 7/1/28, (LOC
Wells Fargo Bank) (b)
700,000 Los Angeles Regional 700,000
Airports (LAX),
1.70%, 12/1/25, (LOC
Societe Generale) (b)
800,000 Los Angeles Unified 800,000
School District (Belmont
Learning Complex),
1.63%, 12/1/17, (LOC
Bank of New York) (b)
6,500,000 Orange County 6,500,000
Apartment
Development Revenue
(Bear Brand
Apartments), 1.66%,
11/1/07, (LOC Freddie
Mac) (b)
12,100,000 State Department Water 12,100,000
Reservoir Revenue,
1.65%, 5/1/22, (LOC
Landesbank
Hessen-Thuringen) (b)
2,500,000 State Department Water 2,500,000
Reservoir Revenue,
1.69%, 5/1/22, (FSA
Insured) (b)
70,000 Statewide Communities 70,000
Development Authority ------------
Events (Motion Picture
& TV), 1.63%, 3/1/31,
(LOC BNP Paribas) (b)
28,520,000
------------
47
================================================================================
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
Tamarack Institutional Tax-Free Money Market Fund (cont.)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
- ------------ ------------
COLORADO - 6.7%
1,000,000 Castlewood Ranch $ 1,000,000
Metropolitan District,
1.15%, 12/1/34, (LOC
U.S. Bank) (b)
570,000 Colorado Springs 570,000
Revenue (Pikes Peak
Mental Health),
1.71%, 3/15/23, (LOC
Wells Fargo Bank) (b)
1,110,000 Colorado Springs 1,110,000
Revenue (YMCA Pikes
Peak), 1.71%, 11/1/22,
(LOC Wells Fargo
Bank) (b)
1,600,000 Crystal Valley 1,600,000
Metropolitan District,
1.71%, 5/1/32, (LOC
Wells Fargo Bank) (b)
1,600,000 Denver City & County 1,600,000
Convention Center,
1.70%, 9/1/25, (FSA
Insured) (b)
600,000 Douglas County MFHR 600,000
(Autumn Chase),
1.69%, 12/1/29, (LOC
Freddie Mac) (b)
2,545,000 Dove Valley 2,545,000
Metropolitan District
(Arapahoe County),
1.20%, 11/1/21, (LOC
BNP Paribas) (b)
1,600,000 State Educational & 1,600,000
Cultural Facilities
Authority (Regis Jesuit
High School), 1.71%,
12/1/33, (LOC Wells
Fargo Bank) (b)
1,500,000 State Educational & 1,500,000
Cultural Facilities
Authority (Denver Art
Museum), 1.71%,
1/1/33, (LOC Wells
Fargo Bank) (b)
SHARES OR
PRINCIPAL
AMOUNT VALUE
- ------------ ------------
2,400,000 State Educational & $ 2,400,000
Cultural Facilities
Authority (Denver
Seminary), 1.71%,
7/1/24, (LOC Wells
Fargo Bank) (b)
1,900,000 State Health Facilities 1,900,000
Authority Revenue
(Craig Hospital), 1.71%,
12/1/20, (LOC Wells
Fargo Bank) (b)
7,400,000 State Health Facilities 7,400,000
Authority Revenue
(Exempla),
1.61%, 1/1/33, (LOC
U.S. Bank) (b)
2,070,000 Superior/McCaslin 2,070,000
Interchange ------------
Metropolitan District,
1.10%, 11/15/24, (LOC
U.S. Bank) (b)
25,895,000
------------
DISTRICT OF COLUMBIA - 2.1%
8,100,000 Series D GO, 8,100,000
1.70%, 6/1/31, (MBIA ------------
Insured) (b)
FLORIDA - 4.4%
2,200,000 Broward County 2,200,000
Educational Facility
Authority Revenue
(Nova Southeastern
University),
1.76%, 4/1/24, (LOC
Bank of America) (b)
900,000 Collier County Health 900,000
Facilities Authority (The
Moorings Inc.), 1.69%,
12/1/24, (LOC Wachovia
Bank) (b)
1,900,000 Dade County IDA 1,900,000
(Dolphins Stadium),
1.72%, 1/1/16, (LOC
Societe Generale) (b)
48
================================================================================
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
Tamarack Institutional Tax-Free Money Market Fund (cont.)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
- ------------ ------------
75,000 Dade County Water & $ 75,000
Sewer Systems
Revenue,
1.66%, 10/5/22, (FGIC
Insured) (b)
1,900,000 Indiana River County 1,900,000
Revenue (St. Edward's
School), 1.69%, 7/1/27,
(LOC First Union
National Bank) (b)
1,000,000 Lee County Health Care 1,000,000
Facilities Revenue (Hope
Hospice Project),
1.76%, 10/1/23, (LOC
Suntrust Bank) (b)
2,360,000 Miami Health Facilities 2,360,000
Authority Revenue
(Mercy Hospital),
1.69%, 8/1/20, (LOC
Nationsbank) (b)
120,000 St. John's County IDA 120,000
Health Care (Glenmore
St. John's),
1.69%, 1/1/07, (LOC
LaSalle Bank) (b)
2,190,000 State Housing Finance 2,190,000
Agency,
1.60%, 12/1/05, (LOC
Freddie Mac) (b)
3,090,000 State Housing Finance 3,090,000
Agency, 1.60%, 2/1/08,
(LOC Freddie Mac) (b)
1,200,000 Sunshine State 1,200,000
Government Finance ------------
Committee,
1.70%, 7/1/16,
(AMBAC Insured) (b)
16,935,000
------------
GEORGIA - 5.5%
1,415,000 Clayton County MFHR 1,415,000
(BS Partners),
1.69%, 9/1/26, (LOC
Fannie Mae) (b)
1,000,000 DeKalb Private Hospital 1,000,000
Authority (Children's
Health Care Project),
1.69%, 12/1/28, (LOC
Suntrust Bank) (b)
SHARES OR
PRINCIPAL
AMOUNT VALUE
- ------------ ------------
1,700,000 DeKalb Private Hospital $ 1,700,000
Authority (Egleston
Children's Hospital),
1.69%, 3/1/24, (LOC
Suntrust Bank) (b)
4,450,000 Fulton County 4,450,000
Development Authority
(St. George Village),
1.70%, 4/1/34, (LOC
Bank of America) (b)
3,600,000 Marietta MFHR, 3,600,000
1.69%, 5/15/07, (FNMA
Collateralized) (b)
9,200,000 Metropolitan Atlanta 9,200,000
Rapid Transit Authority, ------------
1.68%, 7/1/25, (LOC
Bayerische
Landesbank) (b)
21,365,000
------------
IDAHO - 0.4%
1,500,000 State Health Facilities 1,500,000
Revenue (St. Luke's
Medical Center),
1.72%, 5/1/22, (LOC
Harris Trust & Savings
Bank) (b)
240,000 State Health Facilities 240,000
Revenue (St. Luke's ------------
Medical Center),
1.70%, 7/1/30, (FSA
Insured) (b)
1,740,000
------------
ILLINOIS - 4.4%
2,600,000 Chicago O'Hare 2,600,000
International Airport
Revenue,
1.61%, 1/1/15, (LOC
Societe Generale) (b)
3,000,000 Crestwood Tax 3,000,000
Increment Revenue,
1.74%, 12/1/23, (LOC
Fifth Third Bank) (b)
1,800,000 Galesburg Revenue 1,800,000
(Knox College),
1.78%, 3/1/31, (LOC
LaSalle Bank) (b)
1,080,000 Niles Tax Increment, 1,088,911
6.00%, 12/1/04, (FGIC
Insured)
49
================================================================================
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
Tamarack Institutional Tax-Free Money Market Fund (cont.)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
- ------------ ------------
2,850,000 State Development $ 2,850,000
Finance Authority
Revenue (Westside
Health), 1.71%,
12/1/29, (LOC LaSalle
Bank) (b)
2,400,000 State Health Facilities 2,400,000
Authority Revenue
(Memorial Health
Systems), 1.77%,
10/1/22, (LOC Bank
One) (b)
3,450,000 State Health Facilities 3,450,000
Authority Revenue ------------
(University of Chicago
Hospitals),
1.72%, 8/15/26, (MBIA
Inusred) (b)
17,188,911
------------
INDIANA - 1.7%
970,000 State Health Facilities 970,000
Finance Authority
Revenue (Anthony
Wayne Rehabilitation
Center), 1.71%, 2/1/31,
(LOC Wells Fargo
Bank) (b)
200,000 State Health Facilities 200,000
Finance Authority
Revenue (Capital Access
Designated Pool),
1.67%, 1/1/12, (LOC
Comerica Bank) (b)
1,510,000 State Health Facilities 1,510,000
Finance Authority
Revenue (Capital Access
Designated Pool),
1.67%, 1/1/16, (LOC
Comerica Bank) (b)
2,330,000 State Health Facilities 2,330,000
Finance Authority
Revenue (Deaconess
Hospital), 1.69%,
1/1/22, (LOC Fifth Third
Bank) (b)
800,000 State Health Facilities 800,000
Finance Authority
Revenue (Golden Years
Homestead), 1.71%,
6/1/12, (LOC Wells
Fargo Bank) (b)
SHARES OR
PRINCIPAL
AMOUNT VALUE
- ------------ ------------
700,000 State Hospital $ 700,000
Equipment Finance ------------
Authority Revenue,
1.67%, 12/1/15, (MBIA
Insured) (b)
6,510,000
------------
IOWA - 2.2%
1,165,000 State Finance Authority 1,165,000
Revenue (Diocese of
Sioux City Project),
1.71%, 3/1/19, (LOC
Wells Fargo Bank) (b)
1,470,000 State Finance Authority 1,470,000
Revenue (Putnam
Museum of History),
1.71%, 5/1/12, (LOC
Wells Fargo Bank) (b)
1,945,000 State Higher Education 1,945,000
Authority Revenue
(Palmer Chiropractic),
1.71%, 4/1/27, (LOC
LaSalle Bank) (b)
1,200,000 State Higher Education 1,200,000
Loan Authority Revenue
(Mount Mercy College
Project), 1.72%, 7/1/25,
(LOC Bank of
America) (b)
100,000 State Higher Education 100,000
Loan Authority Revenue
(Private Colleges),
1.72%, 11/1/32, (LOC
LaSalle Bank) (b)
1,145,000 Webster County 1,145,000
Educational Facilities
Revenue,
1.71%, 7/1/20, (LOC
Wells Fargo Bank) (b)
1,500,000 Woodbury County 1,500,000
Educational Facilities ------------
Revenue,
1.76%, 11/1/16, (LOC
U.S. Bank) (b)
8,525,000
------------
50
================================================================================
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
Tamarack Institutional Tax-Free Money Market Fund (cont.)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
- ------------ ------------
KANSAS - 0.8%
450,000 Olathe Health Facilities $ 450,000
Revenue,
1.72%, 9/1/32,
(AMBAC Insured) (b)
1,750,000 State Development 1,750,000
Finance Authority
Revenue (Kansas Board
of Regents
Rehabilitation Project),
4.50%, 10/1/04,
(AMBAC Insured)
885,000 State Development 885,000
Finance Authority ------------
Revenue (Shalom
Obligated Group),
1.72%, 11/15/28, (LOC
LaSalle Bank) (b)
3,085,000
------------
KENTUCKY - 2.8%
10,700,000 Breckinridge County 10,700,000
Lease Program Revenue, ------------
1.65%, 12/1/29, (LOC
U.S. Bank) (b)
LOUISIANA - 1.8%
2,000,000 East Baton Rouge Parish 2,081,776
Sales & Use Tax,
5.90%, 2/1/15, (FGIC
Insured)
1,300,000 East Baton Rouge PCR, 1,300,000
1.67%, 11/1/19,
(Obligor Exxon Mobil
Corp.) (b)
3,500,000 State Offshore Terminal 3,500,000
Authority Deepwater ------------
Port Revenue (Loop LLC
Project),
1.69%, 10/1/19, (LOC
Bank One) (b)
6,881,776
------------
MAINE - 1.0%
4,000,000 State Tax Anticipation 4,041,368
Notes, 3.00%, 6/30/05 ------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
- ------------ ------------
MARYLAND - 2.8%
8,900,000 Montgomery County $ 8,900,000
Housing Opportunities
MFHR (Oakwood
Apartments),
1.68%, 11/1/07, (LOC
FHLMC) (b)
2,010,000 State Health & Higher 2,010,000
Education Facilities ------------
Revenue (Pooled Loan
Program),
1.70%, 1/1/29, (LOC
Bank of America) (b)
10,910,000
------------
MASSACHUSETTS - 1.8%
5,100,000 State Health & 5,100,000
Educational Facilities
Authority Revenue
(Capital Assets
Program),
1.72%, 1/1/35, (MBIA
Insured) (b)
2,000,000 State Water Resources 2,000,000
Authority, ------------
1.67%, 4/1/28,
(AMBAC Insured) (b)
7,100,000
------------
MICHIGAN - 0.2%
300,000 Kent Hospital Finance 300,000
Authority Revenue
(Spectrum Health),
1.69%, 1/15/26, (MBIA
Insured) (b)
600,000 State Strategic Fund 600,000
(Clark Retirement), ------------
1.70%, 6/1/31, (LOC
Fifth Third Bank) (b)
900,000
------------
MINNESOTA - 3.3%
693,000 Arden Hills Housing & 693,000
Healthcare Facilities
Revenue,
1.77%, 9/1/29, (LOC
U.S. Bank) (b)
51
================================================================================
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
Tamarack Institutional Tax-Free Money Market Fund (cont.)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
- ------------ ------------
3,475,000 Mendota Heights $ 3,475,000
Housing Mortgage
Revenue,
1.66%, 11/1/31, (LOC
Wells Fargo Bank) (b)
800,000 Minneapolis Revenue 800,000
(Catholic Charities
Projects),
1.69%, 11/1/16, (LOC
Wells Fargo Bank) (b)
1,200,000 Minnetonka MFHR 1,200,000
(Minnetonka Hills
Apartments),
1.69%, 11/15/31,
(FNMA Insured) (b)
1,000,000 Savage Improvement 1,012,974
Services,
5.20%, 2/1/05, (FGIC
Insured)
1,465,000 St. Cloud Infrastructure 1,465,000
Management,
1.66%, 2/1/15, (LOC
Wells Fargo) (b)
1,100,000 St. Paul Housing & 1,100,000
Redevelopment
Authority Revenue
(Science Museum
Project), 1.72%, 5/1/27,
(LOC First Interstate
Bank) (b)
900,000 State Higher Education 900,000
Facilities Authority
Revenue (St. Olaf
College), 1.72%,
10/1/20, (LOC Harris
Trust & Savings
Bank) (b)
1,400,000 State Higher Education 1,400,000
Facilities Authority
Revenue (St. Olaf
College), 1.72%,
10/1/30, (LOC Harris
Trust & Savings
Bank) (b)
530,000 Wayzata ISD, 535,118
4.00%, 2/1/05, (School ------------
District Credit Program
Insured)
12,581,092
------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
- ------------ ------------
MISSISSIPPI - 0.1%
500,000 Jackson County PCR, $ 500,000
1.73%, 6/1/23, (Obligor ------------
Chevron Corp.) (b)
MISSOURI - 0.3%
750,000 State Development 750,000
Finance Board Lease
Revenue (Associated
Municipal Utilities
Lease), 1.77%, 6/1/33,
(LOC U.S. Bank) (b)
500,000 State Health & 500,000
Educational Facilities ------------
Authority Revenue
(Bethesda Health
Group), 1.77%, 8/1/31,
(LOC U.S. Bank) (b)
1,250,000
------------
MONTANA - 0.1%
550,000 Forsysth PCR (Pacificorp 550,000
Project), 1.80%, 1/1/18, ------------
(LOC JP Morgan Chase
Bank) (b)
NEBRASKA - 1.0%
3,700,000 Lancaster County 3,700,000
Hospital Authority ------------
Health Facilities
Revenue (Immanuel),
1.74%, 7/1/30, (LOC
LaSalle Bank) (b)
NEVADA - 1.3%
5,000,000 Director State 5,000,000
Department Business & ------------
Industry (Nevada Cancer
Institute), 1.70%,
12/1/33, (LOC Bank of
America) (b)
NEW JERSEY - 0.9%
3,400,000 State Sports & 3,400,000
Exposition Authority ------------
Contract,
1.68%, 9/1/24, (MBIA
Insured) (b)
52
================================================================================
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
Tamarack Institutional Tax-Free Money Market Fund (cont.)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
- ------------ ------------
NEW YORK - 8.1%
1,600,000 Jay Street Development $ 1,600,000
Corporation State
Courts Facilities Lease
Revenue, 1.62%,
5/1/20, (LOC
Landesbank Hessen) (b)
1,300,000 New York City GO, 1,300,000
1.70%, 8/15/09, (MBIA
Insured) (b)
900,000 New York City GO, 900,000
1.70%, 8/15/11, (MBIA
Insured) (b)
300,000 New York City GO, 300,000
1.73%, 8/1/18, (LOC
Morgan Guaranty
Trust) (b)
3,970,000 New York City GO, 3,970,000
1.66%, 8/15/19, (LOC
Morgan Guaranty
Trust) (b)
3,200,000 New York City GO, 3,200,000
1.66%, 8/1/20, (LOC JP
Morgan Chase Bank) (b)
250,000 New York City 250,000
Municipal Water
Finance Authority
Revenue, 1.73%,
6/15/22, (FGIC
Insured) (b)
600,000 New York City 600,000
Municipal Water
Finance Authority
Revenue, 1.73%,
6/15/23, (FGIC
Insured) (b)
11,000,000 State Local Government 11,000,000
Assistance Program,
1.61%, 4/1/21, (FGIC
Insured) (b)
985,000 State Local Government 985,000
Assistance Program,
1.66%, 4/1/25, (LOC
Bank of Nova Scotia) (b)
475,000 Triborough Bridge & 475,000
Tunnel Authority,
1.68%, 1/1/31, (FSA
Insured) (b)
SHARES OR
PRINCIPAL
AMOUNT VALUE
- ------------ ------------
7,000,000 Triborough Bridge & $ 7,000,000
Tunnel Authority, ------------
1.68%, 1/1/32,
(AMBAC Insured) (b)
31,580,000
------------
NORTH DAKOTA - 0.5%
900,000 Grand Forks Hospital 900,000
Facilities Revenue
(United Hospital),
1.70%, 12/1/16, (LOC
LaSalle Bank) (b)
845,000 Ward County Health 845,000
Care Facilities Revenue ------------
(Trinity Group),
1.77%, 7/1/29, (LOC
U.S. Bank) (b)
1,745,000
------------
OHIO - 2.5%
3,900,000 Cuyahoga County 3,900,000
Hospital Revenue
(University Hospitals of
Cleveland), 1.66%,
1/1/16, (LOC JP Morgan
Chase Bank) (b)
5,300,000 Franklin County 5,300,000
Hospital Revenue
(OhioHealth),
1.69%, 12/1/28, (LOC
National City Bank) (b)
645,000 Warren County Health 645,000
Care Facilities Revenue ------------
(Otterbein Homes
Project), 1.73%, 7/1/23,
(LOC Fifth Third
Bank) (b)
9,845,000
------------
SOUTH CAROLINA - 0.4%
1,680,000 Greenville Hospital 1,698,387
Facilities Revenue, ------------
3.00%, 5/1/05,
(AMBAC Insured)
53
================================================================================
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
Tamarack Institutional Tax-Free Money Market Fund (cont.)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
- ------------ -------------
TENNESSEE - 2.8%
10,700,000 Jackson Energy $ 10,700,000
Authority Wastewater ------------
Systems Revenue,
1.70%, 12/1/22, (FSA
Insured) (b)
TEXAS - 6.1%
2,600,000 Austin County Industrial 2,600,000
Development
Corporation,
1.69%, 12/1/14, (LOC
Bank One) (b)
4,200,000 Bexar County Housing 4,200,000
Financial Authority,
1.72%, 9/15/26, (LOC
FNMA) (b)
1,000,000 Goose Creek ISD, 1,013,087
5.00%, 2/15/15, (PSF
Guaranty)
3,000,000 Gulf Coast Waste 3,000,000
Disposal Authority,
0.95%, 3/1/09, (LOC BP
Amoco) (b)
2,000,000 Harris County Health 2,000,000
Facilities Authority
Revenue,
1.22%, 10/13/04,
(MBIA Insured) (b)
2,300,000 Harris County Industrial 2,300,000
Development
Corporation PCR,
1.61%, 3/1/24, (Obligor
Exxon Mobil Corp.) (b)
5,000,000 Houston Water & Sewer 4,990,489
Systems Revenue,
0.00%, 12/1/04,
(AMBAC Insured)
3,530,000 State Tax & Revenue 3,574,480
Anticipation Notes, ------------
3.00%, 8/31/05
23,678,056
------------
UTAH - 0.7%
500,000 Carbon County PCR 500,000
(Pacificorp),
1.72%, 11/1/24,
(AMBAC Insured) (b)
SHARES OR
PRINCIPAL
AMOUNT VALUE
- ------------ ------------
1,475,000 Salt Lake City Revenue $ 1,475,000
(Valley Mental Health
Project),
1.71%, 12/1/21, (LOC
Wells Fargo Bank) (b)
900,000 Sanpete County School 900,000
Facilities Revenue ------------
(Wasatch Academy),
1.76%, 8/1/28, (LOC
U.S. Bank) (b)
2,875,000
------------
VIRGINIA - 1.5%
930,000 Alexandria IDA (Pooled 930,000
Loan Project),
1.70%, 7/1/26, (LOC
Bank of America) (b)
2,070,000 Fairfax County Public 2,160,536
Improvements,
5.25%, 6/1/17, (State
Aid Withholding)
900,000 Peninsula Ports 900,000
Authority Coalition
Term Revenue
(Dominion Term
Project), 1.66%, 7/1/16,
(LOC Citibank) (b)
1,650,000 Roanoke County 1,650,000
Industrial Development ------------
Authority Healthcare
Facilities Revenue
(Friendship Manor Inc.),
1.69%, 10/1/15, (LOC
Wachovia Bank) (b)
5,640,536
------------
WASHINGTON - 3.1%
4,100,000 State Health Care 4,100,000
Facilities Authority
Revenue (Mason
Medical Center),
1.66%, 2/15/27, (MBIA
Insured) (b)
5,030,000 State Housing & 5,030,000
Finance Commission
Nonprofit Revenue
(Overlake School
Project),
1.71%, 10/1/29, (LOC
Wells Fargo Bank) (b)
54
================================================================================
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
Tamarack Institutional Tax-Free Money Market Fund (cont.)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
- ------------ ------------
1,225,000 State Public Power $ 1,208,721
Supply, 0.00%, 7/1/05,
(MBIA Insured)
945,000 State Public Power 945,000
Supply, 1.66%, 7/1/12,
(MBIA Insured) (b)
700,000 State Public Power 700,000
Supply, 1.68%, 7/1/17, ------------
(LOC Bank of
America) (b)
11,983,721
------------
WISCONSIN - 4.3%
1,500,000 State Health & 1,500,000
Educational Facilities
Authority Revenue
(Divine Savior
Healthcare),
1.72%, 5/1/32, (LOC
U.S. Bank) (b)
800,000 State Health & 800,000
Educational Facilities
Authority Revenue
(Gundersen Lutheran),
1.72%, 12/1/29, (FSA
Insured) (b)
1,050,000 State Health & 1,050,000
Educational Facilities
Authority Revenue
(ProHealth Inc.), 1.72%,
8/15/30, (AMBAC
Insured) (b)
13,400,000 State Health & 13,400,000
Educational Facilities ------------
Authority Revenue
(University of Wisconsin
Medical Foundation),
1.64%, 5/1/30, (LOC
LaSalle Bank) (b)
16,750,000
------------
WYOMING - 3.5%
3,300,000 Lincoln County PCR 3,300,000
(Exxon Project),
1.61%, 11/1/14,
(Obligor Exxon Mobil
Corp.) (b)
3,150,000 Lincoln County PCR 3,150,000
(Exxon Project),
1.61%, 11/1/14,
(Obligor Exxon Mobil
Corp.) (b)
SHARES OR
PRINCIPAL
AMOUNT VALUE
- ------------ ------------
3,300,000 Lincoln County PCR $ 3,300,000
(Exxon Project),
1.61%, 11/1/14,
(Obligor Exxon Mobil
Corp.) (b)
2,600,000 Sublette County PCR 2,600,000
(Exxon Project),
1.67%, 11/1/14,
(Obligor Exxon Mobil
Corp.) (b)
1,000,000 Sweetwater County 1,000,000
PCR (Pacificorp Project), ------------
1.80%, 1/1/14, (LOC
Bank One) (b)
13,350,000
------------
TOTAL MUNICIPAL BONDS 353,786,703
------------
COMMERCIAL PAPER - 8.8%
FLORIDA - 6.4%
6,600,000 Florida Municipal Power, 6,600,000
1.12%, 10/18/04, (LOC
Wachovia Bank)
10,000,000 Intermountain Power, 10,000,000
1.40%, 11/17/04, (LOC
Bank of Nova Scotia
and Bank of America)
8,000,000 Intermountain Power, 8,000,000
1.42%, 12/6/04, (LOC ------------
Bank of Nova Scotia
and Bank of America)
24,600,000
------------
LOUISIANA - 2.4%
4,275,000 State Public Facilities 4,275,000
Authority,
1.19%, 10/19/04,
(AMBAC Insured)
5,000,000 State Public Facilities 5,000,000
Authority, ------------
1.19%, 11/1/04,
(AMBAC Insured)
9,275,000
------------
TOTAL COMMERCIAL PAPER 33,875,000
------------
55
================================================================================
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
Tamarack Institutional Tax-Free Money Market Fund (cont.)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
- ------------ ------------
INVESTMENT COMPANIES - 0.9%
3,295,682 Federated Tax Exempt $ 3,295,682
Money Market Fund ------------
TOTAL INVESTMENT COMPANIES 3,295,682
------------
TOTAL INVESTMENTS 390,957,385
(Cost $390,957,385) (a) - 101.0%
LIABILITIES IN EXCESS OF OTHER (4,204,209)
ASSETS - (0.1)% ------------
NET ASSETS - 100.0% $386,753,176
============
(a) Tax cost of securities is equal to book cost of securities.
(b) Variable rate security. The rate reflected in the Schedule of Portfolio
Investments is the rate in effect on September 30, 2004. The maturity date
represents the actual maturity date. However, for purposes of Rule 2a-7,
maturity is the next interest reset date at which time the security can be put
back to the issuer.
(c) Portfolio abbreviations:
AMBAC - Ambac Assurance Corporation
FGIC - Financial Guaranty Insurance Co.
FHLMC - Federal Home Loan Mortgage Corporation
FNMA - Federal National Mortgage Association
FSA - Financial Security Assurance Inc.
GO - General Obligation
IDA - Industrial Development Authority
IDR - Industrial Development Revenue
ISD - Independent School District
LOC - Letter of Credit
MBIA - MBIA Insurance Corporation
MFHR - Multi-Family Housing Revenue
PCR - Pollution Control Revenue
PSF - Permanent School Fund
SEE NOTES TO FINANCIAL STATEMENTS.
56
================================================================================
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
================================================================================
- --------------------------------------------------------------------------------
To the Board of Trustees and Shareholders of Tamarack Funds Trust
We have audited the accompanying statements of assets and liabilities, including
the schedules of investments, of the portfolios of Tamarack Funds Trust, which
include Prime Money Market Fund, U.S. Government Money Market Fund, Tax-Free
Money Market Fund, Institutional Prime Money Market Fund and Institutional
Tax-Free Money Market Fund (collectively, the "Funds") as of September 30, 2004,
and the related statements of operations for the period from August 1, 2004
through September 30, 2004 and for the year ended July 31, 2004, the statements
of changes in net assets and the financial highlights for the period from August
1, 2004 through September 30, 2004 and for the two years in the period ended
July 31, 2004. These financial statements and financial highlights are the
responsibility of the Funds' management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits. The financial highlights for periods prior to July 31, 2003, were
audited by other auditors whose report, dated August 30, 2002, expressed an
unqualified opinion on those financial highlights.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures included confirmation of
securities owned as of September 30, 2004, by correspondence with the Funds'
custodian and brokers. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of each
of the Funds as of September 30, 2004, the results of their operations, the
changes in their net assets, and the financial highlights for the respective
stated periods in conformity with accounting principles generally accepted in
the United States of America.
DELOITTE & TOUCHE LLP
Chicago, Illinois
November 19, 2004
57
================================================================================
MANAGEMENT
================================================================================
Independent Trustees(1)
- --------------------------------------------------------------------------------
T. GERON BELL (63)
POSITION HELD WITH FUND: Trustee; Since January, 2004
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: President of Twins Sports, Inc.
(parent company of the Minnesota Twins and Victory Sports) (2002-present);
prior thereto President of the Minnesota Twins Baseball Club Incorporated
(1987-present); Director, Great Hall Investment Funds, Inc. (1993-2004);
Trustee, J&B Funds (2003-2004); Director, Babson Funds (2003-2004).
NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN: 17
- --------------------------------------------------------------------------------
LUCY HANCOCK BODE (53)
POSITION HELD WITH FUND: Trustee; Since January, 2004
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Healthcare consultant; Director,
RBC Funds (1994-2004).
NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN: 17
- --------------------------------------------------------------------------------
LESLIE H. GARNER JR. (54)
POSITION HELD WITH FUND: Trustee; Since January, 2004
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: President, Cornell College;
Director, RBC Funds (1994-2004).
NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN: 17
- --------------------------------------------------------------------------------
RONALD JAMES (53)
POSITION HELD WITH FUND: Trustee; Since January, 2004
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: President and Chief Executive
Officer, Center for Ethical Business Cultures (2000-present); Director, Great
Hall Investment Funds, Inc. (1993-2004); Trustee, J&B Funds (2003-2004);
Director, Babson Funds (2003-2004).
NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN: 17
- --------------------------------------------------------------------------------
JOHN A. MACDONALD (55)
POSITION HELD WITH FUND: Trustee; Since January, 2004
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Chief Investment Officer, Hall
Family Foundation; Trustee, J&B Funds (2001-2004).
NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN: 17
- --------------------------------------------------------------------------------
H. DAVID RYBOLT (62)
POSITION HELD WITH FUND: Trustee; Since January, 2004
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Consultant, HDR Associates
(management consulting); Director, Babson Funds (1992-2004).
NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN: 17
- --------------------------------------------------------------------------------
(1) Unless otherwise specified, the address of each trustee/officer is 100
South Fifth Street, Suite 2300, Minneapolis, Minnesota 55402.
58
================================================================================
MANAGEMENT
================================================================================
Independent Trustees(1)
- --------------------------------------------------------------------------------
JAMES R. SEWARD (51)
POSITION HELD WITH FUND: Trustee; Since January, 2004
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Private investor (2000-present);
Trustee, J&B Funds (2001-2004); Financial Consultant, Seward & Company, LLC
(1998-2000); CFA.
NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN: 17
- --------------------------------------------------------------------------------
JAY H. WEIN (72)
POSITION HELD WITH FUND: Trustee; Since January, 2004
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Private investor (1989-present);
Director, Great Hall Investment Funds, Inc. (1993-2004); Trustee, J&B Funds
(2003-2004); Director, Babson Funds (2003-2004).
NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN: 17
- --------------------------------------------------------------------------------
Interested Trustees(1)
- --------------------------------------------------------------------------------
MICHAEL T. LEE (41)
POSITION HELD WITH FUND: Trustee; Since January, 2004
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Chief Operating Officer and Senior
Vice President, Voyageur Asset Management Inc. (2003-present); Senior Portfolio
Manager, Voyageur Asset Management Inc. (2000-present); Vice President, Senior
Research Analyst and Equity Portfolio Manager, Voyageur Asset Management Inc.
(1999-2003).
NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN: 17
- --------------------------------------------------------------------------------
Executive Officers(1)
- --------------------------------------------------------------------------------
JENNIFER D. LAMMERS (43)
POSITION HELD WITH FUND: President and Chief Executive Officer; Since January,
2004
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Managing Director, Voyageur Asset
Management (2000-present); Mutual Fund Services Director, Voyageur Asset
Management (2003-present); Chief Financial Officer, Great Hall Investment Funds,
Inc. (2001-2003); Compliance Officer, Great Hall Investment Funds, Inc.
(2000-2001); Director of Finance, Voyageur Asset Management (2000-2003); Vice
President and Manager, Financial Reporting, RBC Dain Rauscher (1998-2000);
President and Chief Executive Officer (2003-2004)(2).
CHRISTOPHER J. TOMAS (34)
POSITION HELD WITH FUND: Treasurer, Chief Financial Officer, and Principal
Accounting Officer; Since January, 2004
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Vice President and Finance Manager,
RBC Dain Rauscher (2001-present); Compliance Officer, Great Hall Investment
Funds, Inc. (2001-2003); Senior Financial Analyst, RBC Dain Rauscher
(1999-2001); Financial Analyst, RBC Dain Rauscher (1997-1999); Treasurer, Chief
Financial Officer and Principal Accounting Officer (2003-2004)(2).
- --------------------------------------------------------------------------------
(1) Unless otherwise specified, the address of each trustee/officer is 100
South Fifth Street, Suite 2300, Minneapolis, Minnesota 55402.
(2) Great Hall Investment Funds, Inc., J&B Funds, Babson Enterprise Fund, Inc.,
Babson Enterprise Fund II, Inc., Babson-Stewart Ivory International Fund,
Inc., Babson Value Fund, Inc., David L. Babson Growth Fund, Inc., D.L.
Babson Bond Trust, D.L. Babson Money Market Fund, Inc., D.L. Babson
Tax-Free Income Fund, Inc., Shadow Stock Fund, Inc., and Investors Mark
Series Fund, Inc.
59
================================================================================
MANAGEMENT
================================================================================
Executive Officers(1)
- --------------------------------------------------------------------------------
MARTIN A. CRAMER (54)
POSITION HELD WITH FUND: Vice President, Assistant Secretary, Chief Compliance
Officer, and AML Compliance Officer; Since January, 2004
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Vice President and Mutual Fund
Administration Manager, Voyageur Asset Management (2003-present); Legal and
Regulatory Affairs Vice President, Compliance Officer and Secretary, J&B
(mutual fund management and distribution company) (1993-2003); Vice President,
Assistant Secretary, Compliance Officer and AML Compliance Officer
(2003-2004)(2), and formerly, Vice President, Compliance Officer and Secretary,
Buffalo Fund Complex (1994-2003) and Secretary, Gold Bank Funds(3) (2001-2003).
- --------------------------------------------------------------------------------
LAURA M. MORET (50)
POSITION HELD WITH FUND: Secretary and Chief Legal Officer; Since January, 2004
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Vice President and Senior
Associate Counsel, RBC Dain Rauscher (2002-present); Vice President and Group
Counsel, American Express Financial Advisors (1995-2002); Secretary
(2003-2004)(2).
- --------------------------------------------------------------------------------
RAYE C. KANZENBACH (55)
POSITION HELD WITH FUND: Chief Investment Officer, Fixed Income Products; Since
January, 2004
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Senior Managing Director and Chief
Investment Officer, Voyageur Asset Management; Chief Investment Officer, Great
Hall Investment Funds, Inc. (1997-2004).
- --------------------------------------------------------------------------------
(1) Unless otherwise specified, the address of each trustee/officer is 100
South Fifth Street, Suite 2300, Minneapolis, Minnesota 55402.
(2) Great Hall Investment Funds, Inc., J&B Funds, Babson Enterprise Fund, Inc.,
Babson Enterprise Fund II, Inc., Babson-Stewart Ivory International Fund,
Inc., Babson Value Fund, Inc., David L. Babson Growth Fund, Inc., D.L.
Babson Bond Trust, D.L. Babson Money Market Fund, Inc., D.L. Babson
Tax-Free Income Fund, Inc., Shadow Stock Fund, Inc., and Investors Mark
Series Fund, Inc.
(3) The Buffalo Fund Complex consists of Buffalo Balanced Fund, Inc., Buffalo
Large Cap Fund, Inc., Buffalo High Yield Fund, Inc., Buffalo Small Cap
Fund, Inc., Buffalo USA Global Fund, Inc., and the Buffalo Funds, which is
a series fund consisting of Buffalo Science & Technology Fund and Buffalo
Mid Cap Fund. Gold Bank Funds is a series fund consisting of Gold Bank
Equity and Gold Bank Money Market Fund.
60
================================================================================
SUPPLEMENTAL INFORMATION
================================================================================
- --------------------------------------------------------------------------------
As a shareholder of the Tamarack Funds, you incur ongoing costs, including
management fees and other Fund expenses. This example is intended to help you
understand your ongoing costs (in dollars) of investing in the Tamarack Funds
and to compare these costs with the ongoing costs of investing in other mutual
funds.
The Example is based on an investment of $1,000 invested at the beginning of the
period and held for the entire period from April 1, 2004 through September 30,
2004.
- --------------------------------------------------------------------------------
ACTUAL EXPENSES
The table below provides information about actual account values and actual
expenses. You may use the information below, together with the amount you
invested, to estimate the expenses that you paid over the period. Simply divide
your account value by $1,000 (for example, an $8,600 account value divided by
$1,000 = 8.6), then multiply the result by the number in the table under the
heading entitled "Expenses Paid During Period" to estimate the expenses you paid
on your account during this period.
BEGINNING ENDING EXPENSE PAID EXPENSE RATIO
ACCOUNT VALUE ACCOUNT VALUE DURING PERIOD* DURING PERIOD
4/1/04 9/30/04 4/1/04 - 9/30/04 4/1/04 - 9/30/04
--------------- --------------- ------------------ -----------------
Prime Money Market Fund $ 1,000.00 $ 1,003.00 $ 3.56 0.71%
U.S. Government Money
Market Fund 1,000.00 1,002.80 3.55 0.71%
Tax-Free Money Market
Fund 1,000.00 1,002.50 3.10 0.62%
Institutional Prime Money
Market Fund 1,000.00 1,005.00 1.50 0.30%
Institutional Tax-Free
Money Market Fund 1,000.00 1,004.10 1.65 0.33%
- --------------------------------------------------------------------------------
HYPOTHETICAL EXAMPLE
FOR COMPARISON PURPOSES
The table below provides information about hypothetical account values and
hypothetical expenses based on each Tamarack Funds' actual expense ratio and an
assumed rate of return of 5% per year before expenses, which is not the Fund's
actual return. The hypothetical account values and expenses may not be used to
estimate the actual ending account balance or expenses you paid for the period.
You may use this information to compare this 5% hypothetical example with the 5%
hypothetical examples that appear in the shareholder reports of other mutual
funds.
BEGINNING ENDING EXPENSE PAID EXPENSE RATIO
ACCOUNT VALUE ACCOUNT VALUE DURING PERIOD* DURING PERIOD
4/1/04 9/30/04 4/1/04 - 9/30/04 4/1/04 - 9/30/04
--------------- --------------- ------------------ -----------------
Prime Money Market Fund $ 1,000.00 $ 1,021.45 $ 3.59 0.71%
U.S. Government Money
Market Fund 1,000.00 1,021.45 3.59 0.71%
Tax-Free Money Market
Fund 1,000.00 1,021.90 3.13 0.62%
Institutional Prime Money
Market Fund 1,000.00 1,023.50 1.52 0.30%
Institutional Tax-Free
Money Market Fund 1,000.00 1,023.67 1.67 0.33%
*Expenses are equal to the average account value times the Fund's annualized
expense ratio multiplied by the number of days in the six month period ending
September 30, 2004 divided by the number of days in the twelve month period
ending September 30, 2004.
61
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62
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- --------------------------------------------------------------------------------
63
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64
[PHOTO]
Tamarack Funds PRSRT STD
100 South 5th Street U.S. POSTAGE
Minneapolis, MN 55402-1250 PAID
PERMIT NO. 100
800-934-6674 MINNEAPOLIS MN
TF AR 9/04 TAMARACK DISTRIBUTORS INC.
532143 (9/04)
TAMARACK FUNDS
Annual Report September 30, 2004
[PHOTO]
GOVERNMENT INCOME FUND
QUALITY FIXED INCOME FUND
TAX-FREE INCOME FUND
NORTH CAROLINA TAX-FREE BOND FUND
[TAMARACK FUNDS LOGO]
================================================================================
================================================================================
TAMARACK FUNDS
- --------------------------------------------------------------------------------
ABOUT YOUR ANNUAL REPORT
This annual report includes detailed information regarding your Fund's
performance. This report is provided to help answer your questions as a
shareholder. Among these questions may be: How has my Fund performed against its
benchmark both in the last year and over the last ten years (or since inception
if less than ten years)? What are the annual expenses of my Fund? What are the
significant accounting policies and procedures followed by my Fund?
The Tamarack Funds compare their performance against widely used market indices,
depending on the market sector or investment style of the particular fund. Fixed
income funds are benchmarked against various Lehman Brothers Bond Indices, which
show only the performance of the underlying fixed income securities, rather than
of a comparable fund that would be available to an average investor.
We hope the financial information presented, as well as the discussion and
analysis from your portfolio manager(s), will help you evaluate your investment
in the Tamarack Funds. We also encourage you to read your Fund's prospectus for
further detail as to your Fund's investment policies and risk profile. Tamarack
Funds prospectuses and performance information subsequent to the date of this
report are available on our website at www.tamarackfunds.com.
A description of the policies and procedures that your Fund uses to determine
how to vote proxies relating to portfolio securities is available (i) without
charge, upon request, by calling 1-800-422-2706; (ii) on the Fund's website at
www.tamarackfunds.com; and (iii) on the Securities and Exchange Commission's
(the "Commission") website at http://www.sec.gov.
Information regarding how your Fund voted proxies relating to portfolio
securities during the most recent 12-month period ended June 30 is available (i)
on the Fund's website at www.tamarackfunds.com; and (ii) on the Commission's
website at http://www.sec.gov.
A schedule of each Fund's portfolio holdings will be filed with the Commission
for the first and third quarters of each fiscal year on Form N-Q. This
information is available on the Commission's website at http://www.sec.gov and
may be reviewed and copied at the Commission's Public Reference Room in
Washington, D.C. Information on the operation of the Public Reference Room is
available by calling 1-800-SEC-0330.
- --------------------------------------------------------------------------------
TABLE OF CONTENTS
Shareholder Letter ........................................................ 1
Letter from the CIO of Fixed Income ....................................... 2
Fixed Income Portfolio Managers ........................................... 3
Performance Summary ....................................................... 4
Government Income Fund
- - Management Discussion and Analysis ...................................... 6
Quality Fixed Income Fund
- - Management Discussion and Analysis ...................................... 8
Tax-Free Income Fund
- - Management Discussion and Analysis ...................................... 10
North Carolina Tax-Free Bond Fund
- - Management Discussion and Analysis ...................................... 12
Financial Statements
- - Statements of Assets and Liabilities .................................... 14
- - Statements of Operations ................................................ 16
- - Statements of Changes in Net Assets ..................................... 20
Financial Highlights ...................................................... 24
Notes to Financial Statements ............................................. 31
Schedules of Portfolio Investments ........................................ 41
Report of Independent Registered Public Accounting Firm ................... 53
Management ................................................................ 54
Share Class Information ................................................... 57
Supplemental Information .................................................. 58
================================================================================
SHAREHOLDER LETTER
================================================================================
To Our Shareholders
- --------------------------------------------------------------------------------
Enclosed is the first annual report as of the new Tamarack Funds year-end of
September 30th. This report includes information on all of the Tamarack fixed
income funds as of that date. The Tamarack fixed income funds include both
taxable and tax-exempt funds depending on your investment needs. At the Tamarack
Funds we believe it is important for prudent investors to be diversified in
terms of bond duration and type, again depending on your particular investment
goals. The past twelve months have been a volatile period in the U.S. economy
and this has been reflected in changes in the fixed income markets. We believe
this environment has only served to emphasize the importance of diversified
investing with a long-term perspective. We also believe diversified investing
should include equity securities. For a full overview of the Tamarack Funds,
please visit our website at www.tamarackfunds.com.
This annual report includes detailed information as to the performance of your
Fund(s), as well as commentary from each Fund portfolio manager and a message
from the Tamarack Chief Investment Officer of Fixed Income. This information is
prepared to provide you with information as to your Fund(s)' performance
relative to its market sector as well as a review of your Fund(s)' expenses. We
encourage you to review this information and hope you will find it helpful. Our
next shareholder report to you will be in six months, as of March 31, 2005.
However, daily return information, monthly updates on top ten holdings, and
detailed quarterly updates on the Tamarack Funds are posted on our website. You
may also call the Funds' toll-free number at (800) 422-2766 for assistance with
your questions. We know that your investment in the Tamarack Funds is important
to you. We value the trust you have placed in us and will continue our efforts
to provide you with solid risk-balanced returns.
Sincerely,
/s/ Jennifer Lammers
Jennifer Lammers
President, Tamarack Funds
1
================================================================================
LETTER FROM THE CIO OF FIXED INCOME
================================================================================
- --------------------------------------------------------------------------------
Bonds come in a wide maturity spectrum, ranging from one day to thirty years or
more, and when discussing the outlook for these fixed income securities it's
useful to divide them into three maturity groups: short-term, intermediate-term,
and long-term. Short-term interest rates closely follow the overnight Fed Funds
rate, which is essentially controlled by the Federal Reserve (the "Fed").
Long-term rates reflect the longer-term expectations of investors and borrowers
as to the future rate of inflation and other factors. Intermediate rates embody
a mixture of these factors.
Looking at short-term rates, the Federal Reserve lowered the overnight Fed Funds
rate to 1.00% in June 2003, its lowest level in 40 years. The Fed took this
action to further stimulate the economy because it feared there was a chance of
deflation. As the economy gained momentum, the Fed indicated that it would
remove this extra stimulation (by raising rates) and move the Fed Funds rate
closer to a neutral policy level. Unfortunately, no one knows just what Fed
Funds rate constitutes a "neutral" level, nor how rapidly the Fed wants to get
there. But we believe that, barring a major economic slow-down, the Fed will
continue to raise rates.
Longer-term interest rates are more complicated, and forecasting them is
exceedingly difficult. These rates are affected by a large number of factors,
including the expectations as to future short-term rates, expectations as to
future inflation, and investors' views as to the riskiness of holding longer
maturity investments. Most of the time, long-term rates are higher than
short-term rates. Currently, the differential in yield on longer bonds is
unusually large. This is primarily because short-term rates are still very low
and are expected to rise. Despite this significant differential, long bond
yields are in the lower part of their historical trading range. The bond market
uses the 10-year maturity Treasury as a benchmark for the long portion of the
bond market. As of mid-October 2004 the 10-year Treasury yield is 4.05%. Since
1996 its yield has ranged from 7.00% down to 3.11%. The lowest yield was in June
2003 at the height of the deflation scare, and the last time it was above 5.00%
was in June 2002.
Over the Funds' fiscal year ending September 30, 2004, the yield on the 10-year
Treasury rose only 0.23% and the 30-year Treasury yield didn't change at all.
Most participants in the bond market were surprised that long-term rates did not
rise significantly, since the economy was well into recovery and the Fed was
increasing the Fed Funds rate. The key to this stability was probably the
steadiness of inflation, which is a bond's greatest enemy. Throughout the 1980's
and 1990's the real interest rate (adjusted for inflation) on long-term bonds
was unusually high. But now after many years of benign inflation, bond investors
may be willing to accept lower real returns because they believe the risk of
accelerating inflation has diminished. If this is true, we may all have to get
used to interest rates lower than what we have enjoyed in the past.
/s/ Raye C. Kanzenbach
Raye C. Kanzenbach
Chief Investment Officer, Fixed Income Funds
Tamarack Funds
[PHOTO]
Raye C. Kanzenbach
Chief Investment Officer
Fixed Income Funds
2
================================================================================
FIXED INCOME PORTFOLIO MANAGERS
================================================================================
- --------------------------------------------------------------------------------
Voyageur Asset Management employs a team approach to the management of each of
the fixed income funds. Each Fund's management team has access to Voyageur's
investment research and other money management resources. The members of
Voyageur's fixed income funds team are:
- --------------------------------------------------------------------------------
RAYE C. KANZENBACH, CFA
SENIOR MANAGING DIRECTOR, SENIOR PORTFOLIO MANAGER
Raye Kanzenbach is the Senior Portfolio Manager for portfolios which invest in
tax-exempt securities. He is also the Chief Investment Officer, Fixed Income
Products for the Tamarack Funds. Raye has been with Voyageur and its predecessor
firm, Insight Investment Management, since 1983. He has been in the investment
industry since 1973. Raye received his MBA from the University of Michigan, his
BA from Lawrence University and is a CFA charterholder.
- --------------------------------------------------------------------------------
JAMES A. NORUNGOLO, CFA
VICE PRESIDENT, SENIOR PORTFOLIO MANAGER
James Norungolo's management emphasis is on core duration portfolios. He
specializes in the corporate bond sector, and also lends the Voyageur taxable
fixed income team his strength in asset-backed securities (ABS). James has been
with Voyageur since 1993 and has been in the investment industry since 1987.
James received his BA from the University of Virginia and is a CFA
charterholder.
- --------------------------------------------------------------------------------
SCOTT CABALKA
VICE PRESIDENT, SENIOR PORTFOLIO MANAGER
Scott Cabalka is responsible for all trading in the taxable portfolios of the
Tamarack Money Market Funds. In addition, he oversees the approved issuer list
for the Tamarack Funds. Scott has been with Voyageur and its predecessor firm,
Insight Investment Management, since 1993. He has been in the investment
industry since 1980. Scott received his MBA and BS from the University of
Minnesota.
- --------------------------------------------------------------------------------
RANDAL W. HARRISON, CFA
VICE PRESIDENT, SENIOR PORTFOLIO MANAGER
Randy Harrison's areas of expertise are the mortgage-backed and commercial
mortgage-backed securities markets. Randy has been with Voyageur since 1993 and
has been in the investment industry since 1990. Randy received his MBA from the
University of Iowa, his BS from Miami University (Ohio) and is a CFA
charterholder.
3
================================================================================
PERFORMANCE SUMMARY
================================================================================
Total Returns as of September 30, 2004
- --------------------------------------------------------------------------------
TAMARACK GOVERNMENT INCOME FUND
SINCE
1 YEAR 3 YEAR 5 YEAR 10 YEAR INCEPTION (a)
------ ------ ------ ------- -------------
Class A (e)
- Including Maximum Sales
Charge of 3.75% -2.57% 2.51% 5.11% 5.48% 5.52%
- At Net Asset Value 1.23% 3.83% 5.91% 5.88% 5.81%
Class C (f)
- Including Contingent Deferred
Sales Charge of 1.00% -0.48% 3.06% 5.12% 5.09% 5.02%
- At Net Asset Value 0.49% 3.06% 5.12% 5.09% 5.02%
Class I (e) 1.49% 4.09% 6.15% 6.14% 6.13%
Class R (f) 1.07% 3.61% 5.66% 5.63% 5.56%
Class S (g) 1.39% 4.06% 6.13% 6.13% 6.13%
LB Intermediate Gov't Index * 1.91% 4.57% 6.51% 6.72% 6.53%
- --------------------------------------------------------------------------------
TAMARACK QUALITY FIXED INCOME FUND
SINCE
1 YEAR 3 YEAR 5 YEAR INCEPTION (b)
------ ------ ------ -------------
Class A (e)
- Including Maximum Sales
Charge of 3.75% -1.07% 2.73% 5.12% 4.66%
- At Net Asset Value 2.78% 4.05% 5.93% 5.41%
Class C (f)
- Including Contingent Deferred
Sales Charge of 1.00% 1.07% 3.27% 5.14% 4.62%
- At Net Asset Value 2.02% 3.27% 5.14% 4.62%
Class I (e) 3.04% 4.29% 6.19% 5.65%
Class R (f) 2.52% 3.79% 5.66% 5.14%
Class S (g) 3.04% 4.29% 6.19% 5.65%
LB U.S. Aggregate Bond Index* 3.68% 5.88% 7.48% 6.78%
- --------------------------------------------------------------------------------
TAMARACK TAX-FREE INCOME FUND
SINCE
1 YEAR 3 YEAR 5 YEAR 10 YEAR INCEPTION (d)
------ ------ ------ ------- -------------
Class A (h)
- Including Maximum Sales
Charge of 3.75% -1.58% 3.45% 4.82% 5.15% 6.45%
- At Net Asset Value 2.24% 4.76% 5.62% 5.55% 6.61%
Class C (h)
- Including Contingent Deferred
Sales Charge of 1.00% 0.51% 3.98% 4.84% 4.77% 5.82%
- At Net Asset Value 1.49% 3.98% 4.84% 4.77% 5.82%
Class R (h) 1.99% 4.50% 5.36% 5.29% 6.35%
Class S 2.49% 5.02% 5.88% 5.81% 6.88%
LB Municipal Bond Index* 4.60% 5.79% 6.77% 6.77% 8.38%
- --------------------------------------------------------------------------------
4
================================================================================
PERFORMANCE SUMMARY
================================================================================
TAMARACK NORTH CAROLINA TAX-FREE BOND FUND
SINCE
1 YEAR 3 YEAR 5 YEAR 10 YEAR INCEPTION (c)
------ ------ ------ ------- -------------
Class A (e)
- Including Maximum Sales
Charge of 3.75% -2.66% 2.27% 3.89% 4.56% 4.39%
- At Net Asset Value 1.17% 3.58% 4.67% 4.96% 4.68%
Class I (e) 1.43% 3.84% 4.94% 5.22% 5.01%
LB 5-Yr. Muni-Bond Index* 2.04% 4.89% 5.82% 5.71% 5.62%
- --------------------------------------------------------------------------------
Performance data quoted represents past performance. Past performance is no
guarantee of future results. Investment return and principle value of an
investment will fluctuate so that an investor's shares, when redeemed, may be
worth more or less than their original cost. Current performance may be lower or
higher than performance quoted.
*Each of the comparative indices is a widely recognized market value weighted
measure of the return of securities. Index returns are calculated on a monthly
basis, but do not include sales fees or operating expenses. You cannot invest
directly into indices.
(a) The since inception date (commencement of operations) of the Fund is
December 31, 1990.
(b) The since inception date (commencement of operations) of the Fund is May
10, 1999.
(c) The since inception date (commencement of operations) of the Fund is
January 31, 1991.
(d) The since inception date (commencement of operations) of the Fund is
February 22, 1980.
(e) The performance in the table reflects the performance of the former RBC
Funds, the predecessors to the Tamarack Funds. The quoted performance of
the Government Income Fund and the North Carolina Tax-Free Bond Fund
includes the performance of a common trust fund ("CTF") account advised by
the Adviser (including its predecessor) and managed the same as the Funds
in all material respects, for periods dating prior to the Government Income
Fund's and the North Carolina Tax-Free Fund's commencement of operations on
June 1, 1994, as adjusted to reflect the full contractual rate of expenses
associated with the Funds at their inception. The CTF account was not
registered with the SEC under the 1940 Act and therefore was not subject to
the investment restrictions imposed by law on registered mutual funds. If
the CTF account had been registered, the CTF account's performance may have
been adversely affected. Fund performance reflects applicable fee
waiver/expense reimbursements (which, if excluded, would cause performance
to be lower).
(f) The inception date for Class C and Class R shares of the Fund is April 19,
2004. All performance shown for each such class of shares prior to its
inception date is based on the performance of the Class A Shares of the
Fund, adjusted to reflect the fees and expenses of Class C and Class R
shares, as applicable (and where applicable, the contingent deferred sales
charges of the Class C shares).
(g) The inception date for Class S of the Fund is April 19, 2004. All
performance shown for this class of shares prior to its inception date is
based on the performance of the Class I Shares of the Fund, adjusted to
reflect the fees and expenses of Class S.
(h) The inception date for Class A, Class C and Class R shares of the Fund is
April 19, 2004. All performance shown for each such class of shares prior
to its inception date is based on the performance of the Class S Shares of
the Fund, adjusted to reflect the fees and expenses of Class A, Class C and
Class R shares, as applicable (and where applicable, the maximum sales
charges of the Class A and Class C shares).
5
================================================================================
MANAGEMENT DISCUSSION AND ANALYSIS
================================================================================
TAMARACK GOVERNMENT INCOME FUND
- --------------------------------------------------------------------------------
MARKET COMMENTARY
Given fixed income market conditions in the fall of 2003, investors are likely
looking at today's market with a degree of relief. Treasury rates have generally
risen in an orderly fashion over the last twelve months, providing both higher
income and slightly positive bond price increases. Despite three hikes in the
Federal Funds rate so far this calendar year and higher short-term Treasury bond
yields, investors were still better off holding intermediate-term bonds versus
holding cash or similar investments. During the third calendar quarter of 2004,
renewed doubt regarding the economy occurred as monthly payroll growth fell well
short of expectations. Much of the rise in Treasury rates occurred early in 2004
when U.S. employment reports showed strong gains. The latter portion of the year
has been much more volatile, as job reports have been both above and below
economists' expectations and Treasury rates have fluctuated with these reports.
Ten-year Treasury rates declined to 3.65% in March of 2004 before selling off to
a high of 4.90% rate during the second calendar quarter of 2004. The market
briefly traded back through 4.00% in September before ending our fiscal year at
4.12%. (Fixed income investors will remember that bond prices and yields move in
opposite directions, in other words, as yields move lower bonds trade at higher
prices.)
- --------------------------------------------------------------------------------
PERFORMANCE
Market returns for the fiscal year as represented by the Lehman Brothers
Intermediate Government Index were chiefly a function of coupon income as bond
prices have been volatile during the fiscal year and ended the period
essentially flat. During the third calendar quarter of 2004, fixed income prices
were up when the bond market managed another strong rally in July and August,
offsetting earlier negative returns. Net of fees, returns in your Fund trailed
the benchmark for the 12 month period ended September 30, 2004. Class A returns
(net of fees) provided a 1.23% return versus the Lehman 1 to 10-year Government
Bond index's returns of 1.91%. The Lehman Government Index represents a large
basket of securities that typical investors cannot actually buy and does not
include any operating expenses. However, excluding fees, the most significant
factor in below-benchmark performance was the Fund's holding its portfolio
duration below that of the benchmark at a time of rising bond prices. While we
felt this was a prudent strategy in a time of market uncertainty, this did limit
the income returns during the past year. As far as specific Fund holdings, we
held more mortgage-backed securities than the benchmark, which helped returns by
contributing higher income than other fixed income securities during the year.
- --------------------------------------------------------------------------------
OUTLOOK
We believe that the outlook calls for solid U.S. economic growth, a modest
increase in inflation, and a continuation of the Federal Reserve Board's gradual
program to increase the Fed Funds rate. By nearly any historical measure, given
the current economic outlook, U.S. bonds appear close to fully valued. We
therefore expect returns mostly to be from interest income, not price
appreciation on individual holdings. The difference in market prices between
U.S. Treasuries and mortgage-backed securities (such as GNMA's) is currently
very slim. Consequently, we are positioning the Fund to carry little excess
risk, as the market is not rewarding investors for a more aggressive posture. In
this environment, we are also keeping portfolio duration close to our benchmark
and maintaining our investment discipline of seeking the fixed income securities
across both the mortgage and agency sectors to seek to maximize yield in a
well-diversified, high quality manner.
[PHOTO]
Randal W. Harrison, CFA
Vice President
6
================================================================================
MANAGEMENT DISCUSSION AND ANALYSIS
================================================================================
TAMARACK GOVERNMENT INCOME FUND
- --------------------------------------------------------------------------------
INVESTMENT OBJECTIVE
Relatively high current income consistent with relative stability of principal
and safety
- --------------------------------------------------------------------------------
BENCHMARK
Lehman Brothers Intermediate Government Index
- --------------------------------------------------------------------------------
ASSET ALLOCATION
(% OF FUND'S INVESTMENTS)
[PIE CHART]
Fannie Mae 48.6%
Federal Home Loan Bank 21.9%
Freddie Mac 15.7%
Government National Mortgage Association 12.8%
Small Business Administration 1.0%
- --------------------------------------------------------------------------------
TOP TEN HOLDINGS
(AS OF 9/30/04)
(% OF FUND'S NET ASSETS)
FHLB 2.75%, 03/14/08 7.67% FHLB 5.75%, 05/15/12 5.49%
FNMA 4.50%, 10/01/13 5.92% FNMA 5.00%, 01/15/07 5.27%
FHLMC 5.00%, 12/01/17 5.78% FHLMC 4.88%, 03/15/07 5.26%
GNMA 5.29%, 11/16/15 5.73% FHLB 5.38%, 05/15/06 5.25%
FNMA 7.13%, 03/15/07 5.52% GNMA 4.36%, 02/16/30 4.91%
*A listing of all portfolio holdings can be found on page 41.
- --------------------------------------------------------------------------------
GROWTH OF $10,000 INITIAL
INVESTMENT OVER 10 YEARS
(DOLLARS IN THOUSANDS)
LEHMAN BROTHERS
INTERMEDIATE
GOVERNMENT
CLASS A INDEX
------- ---------------
9/30/1994 $ 9,625 $10,000.00
3/31/1995 9,957 10,405.29
9/30/1995 10,531 11,060.45
3/31/1996 10,743 11,352.21
9/30/1996 10,933 11,625.02
3/31/1997 11,099 11,890.91
9/30/1997 11,650 12,534.97
3/31/1998 12,083 13,006.19
9/30/1998 12,787 13,865.30
3/31/1999 12,792 13,861.45
9/30/1999 12,798 13,973.91
3/31/2000 12,955 14,195.88
9/30/2000 13,545 14,841.64
3/31/2001 14,468 15,893.46
9/30/2001 15,231 16,751.96
3/31/2002 15,109 16,684.79
9/30/2002 16,331 18,164.55
3/31/2003 16,689 18,511.31
9/30/2003 16,843 18,798.91
3/31/2004 17,160 19,174.94
9/30/2004 17,050 19,157.07
The graph reflects an initial investment of $10,000 over a 10 year period and is
based on Class A shares at net asset value. The Fund's maximum sales charge is
3.75%. The Fund's total return includes reinvested dividends and capital gains.
The Fund's total return also includes operating expenses that reduce return,
while the total return of the index does not. The graph does not reflect the
deduction of taxes that a shareholder would pay on fund distributions or
redemption of fund shares. Performance data quoted represents past performance.
Past performance is no guarantee of future results. Investment return and
principal value of an investment will fluctuate so that an investor's shares,
when redeemed, may be worth more or less than their original cost. Current
performance may be lower or higher than performance quoted. Performance of other
classes will vary due to differences in fee structures.
7
================================================================================
MANAGEMENT DISCUSSION AND ANALYSIS
================================================================================
TAMARACK QUALITY FIXED INCOME FUND
- --------------------------------------------------------------------------------
MARKET COMMENTARY
The U.S. high-grade bond market delivered solid, if unspectacular, returns
during the last twelve months. Following the tax rebate fueled 7.4% GDP growth
rate during the third calendar quarter in 2003, the economy maintained a 4%
growth rate since the beginning of calendar year 2004. Coincident with these
signs of economic recovery, official payroll statistics during the autumn of
2003 finally began reflecting the domestic job creation necessary to make the
recovery self-sustaining. However, early 2004 brought renewed doubt regarding
the economy as monthly payroll growth fell well short of expectations during the
first calendar quarter. During the balance of 2004 payroll reports have been on
a seesaw, both above and below economists' expectations. Interest rates have
shown a similar pattern. Ten-year Treasury rates rallied to 3.65% in March of
this year before selling off to a 4.90% rate during 2004. The market briefly
traded back through 4.00% in September before ending our fiscal year at 4.12%;
recall that as yields fall bond prices are rising, so rising yields mark periods
of negative bond returns. Inflation concerns during the first half of 2004
appeared to dissipate despite a huge run-up in energy prices. Within the broad
market sectors held by the Fund (including Treasuries, Agency Debt, Mortgages,
Asset-Backed Securities, and Corporate Debt), the Corporate Debt category added
the most value to the portfolio due to tightening credit spreads during a period
of high demand for yield, solid economic growth, accommodative monetary policy,
and improving corporate balance sheets.
- --------------------------------------------------------------------------------
PERFORMANCE
Market returns for the twelve months ended September 30, 2004, as represented by
the Lehman Brothers U.S. Aggregate Bond Index, totaled 3.68% and were chiefly
due to coupon income as price returns have been volatile and essentially flat
during the period. In fact, without the price appreciation of July and August,
total returns for the 12 month period ended September 30, 2004 would have been
nearly flat. The Fund's return for the 12 month period ended September 30, 2004
was +2.78% (Class A, net of fees). The relative return disadvantage primarily
reflects the impact of defensively holding portfolio duration below the market
at a time of rising bond prices.
- --------------------------------------------------------------------------------
OUTLOOK
The general consensus among economic forecasters calls for continued solid
economic growth, modest increases in inflation expectations, and the
continuation of the Federal Reserve Board's gradual program to remove monetary
stimulus. We expect that the Fed Funds rate should be at or above 2.50% by March
2005. By nearly any historical measure, under current economic conditions and
expectations, U.S. bonds appear close to fully valued. Accordingly, we believe
that total return expectations for the coming year will be more a function of
coupon income than market appreciation. Real interest rates are low and credit
and mortgage-related spreads are tight, which results in lower than average
yield differentials when taking credit risk on corporate debt or prepayment risk
on mortgage-related structures. In this environment, we are keeping portfolio
duration in line with the market and maintaining our investment discipline of
seeking the best ideas across our market sectors while building portfolio yield
in a well-diversified, high quality manner.
[PHOTO]
James A. Norungolo, CFA,
Vice President
8
================================================================================
MANAGEMENT DISCUSSION AND ANALYSIS
================================================================================
TAMARACK QUALITY FIXED INCOME FUND
- --------------------------------------------------------------------------------
INVESTMENT OBJECTIVE
Current income and capital appreciation
- --------------------------------------------------------------------------------
BENCHMARK
Lehman Brothers U.S. Aggregate Bond Index
- --------------------------------------------------------------------------------
ASSET ALLOCATION
(% OF FUND'S INVESTMENTS)
[PIE CHART]
Corporate Bonds 41.5%
U.S. Governments Agency Obligations 31.4%
Collateralized Mortgage Obligations 8.3%
U.S. Treasury Bonds 6.5%
Commerical Mortgage Backed Securities 6.3%
Asset Backed Securities 3.1%
U.S. Treasury Notes 1.6%
U.S. Treasury Inflation Protection Bonds 1.0%
Investment Companies 0.3%
- --------------------------------------------------------------------------------
TOP TEN HOLDINGS
(AS OF 9/30/04)
(% OF FUND'S NET ASSETS)
GNMA 5.00%, 01/15/34 4.60% Toyota Motor Credit Corp.,
U.S. Treasury Bonds 8.125%, 4.35%, 12/15/10 1.54%
05/15/21 3.35% U.S. Treasury Notes 3.875%,
FNMA 4.50%, 12/01/17 2.77% 02/15/13 1.15%
Countrywide Alternative Loan Residential Funding Mortgage
Trust, Series 2004-12CB, Securities I, Series 2004-S5,
Class 1A1, 5.00%, Class 1A1, 5.25%,
07/25/19 2.20% 05/25/34 1.10%
FNMA 5.00%, 09/01/33 1.99% Structured Asset Securities
JP Morgan Commercial Mortgage Corp., Series 2004-17XS,
Finance Corp., Series 1999-C7, Class A2, 4.45%, 09/25/34 1.09%
Class A2, 6.51%, 10/15/35 1.75%
*A listing of all portfolio holdings can be found on page 42.
- --------------------------------------------------------------------------------
GROWTH OF $10,000 INITIAL
INVESTMENT OVER 10 YEARS
[FLOW CHART]
(DOLLARS IN THOUSANDS)
LEHMAN BROTHERS
U.S. AGGREGATE
CLASS A BOND INDEX
------- ---------------
5/11/1999 $ 9,625 $10,000.00
9/30/1999 9,586 14,584.70
3/31/2000 9,794 14,888.36
9/30/2000 10,171 15,604.16
3/31/2001 10,949 16,753.96
9/30/2001 11,349 17,625.45
3/31/2002 11,078 17,649.91
9/30/2002 11,874 19,140.58
3/31/2003 12,156 19,712.42
9/30/2003 12,437 20,176.12
3/31/2004 12,730 20,777.83
9/30/2004 12,784 20,918.13
The graph reflects an initial investment of $10,000 since inception of 5/11/1999
and is based on Class A shares at net asset value. The Fund's maximum sales
charge is 3.75%. The Fund's total return includes reinvested dividends and
capital gains. The Fund's total return also includes operating expenses that
reduce return, while the total return of the index does not. The graph does not
reflect the deduction of taxes that a shareholder would pay on fund
distributions or redemption of fund shares. Performance data quoted represents
past performance. Past performance is no guarantee of future results. Investment
return and principal value of an investment will fluctuate so that an investor's
shares, when redeemed, may be worth more or less than their original cost.
Current performance may be lower or higher than performance quoted. Performance
of other classes will vary due to differences in fee structures.
9
================================================================================
MANAGEMENT DISCUSSION AND ANALYSIS
================================================================================
TAMARACK TAX-FREE INCOME FUND
- --------------------------------------------------------------------------------
MARKET COMMENTARY
During the twelve months ending September 30, 2004, interest rates on bonds with
maturities shorter than seven years rose by about 0.50%, but rates on longer
bonds fell slightly. Shorter-term rates rose from the very low levels that
prevailed a year ago in response to the Federal Reserve's change in monetary
policy. The Federal Reserve raised the overnight Fed Funds rate from 1.00% to
1.75% in three moves this summer because it believes the economy is experiencing
a sustainable recovery. Although longer-term bond rates had only a small net
change, interest rates were volatile during the year. Interest rates rose
sharply in the spring of 2004 when the economy was growing rapidly, but then
rates declined during the summer as the economy's growth moderated. The yield
differential for longer maturities over shorter maturities is still unusually
large, although less than it was a year ago.
- --------------------------------------------------------------------------------
PERFORMANCE
The Tamarack Tax-Free Income Fund (Class A, net of fees) had a total return of
2.24% for the year. The Lehman Brothers Municipal Bond Index, which is an index
of investment grade municipal bonds with maturities longer than one year and is
the Fund's benchmark, had a total return of 4.60%. Of course the Index, unlike a
mutual fund, does not have any fees or expenses, and cannot be directly
purchased by investors. The primary reason for the Fund's below benchmark
performance was its longer average maturity versus the benchmark, which hurt
returns during the general bond market decline in the spring of 2004.
- --------------------------------------------------------------------------------
OUTLOOK
The economy continues to grow, but somewhat sluggishly. The Fed has made it
clear that it plans to raise short-term interest rates to what it describes as a
more neutral level, although the term "neutral" has not been defined. Inflation
remains benign. Rising short-term interest rates and an expanding economy
usually put upward pressure on interest rates. However, this may be tempered by
low inflation and by the higher yields that are already available on longer
maturity bonds.
[PHOTO]
Raye C. Kanzenbach, CFA,
Senior Managing Director
10
================================================================================
MANAGEMENT DISCUSSION AND ANALYSIS
================================================================================
TAMARACK TAX-FREE INCOME FUND
- --------------------------------------------------------------------------------
INVESTMENT OBJECTIVE
Providing the highest level of regular income exempt from federal income tax
consistent with stated quality and maturity standards
- --------------------------------------------------------------------------------
BENCHMARK
Lehman Brothers Municipal Bond Index
- --------------------------------------------------------------------------------
ASSET ALLOCATION
(% OF FUND'S INVESTMENTS)
[PIE CHART]
Municipal Bonds 95.4%
Investment Companies 4.6%
- --------------------------------------------------------------------------------
TOP TEN HOLDINGS
(AS OF 9/30/04)
(% OF FUND'S NET ASSETS)
Arkansas State University Foxborough Stadium Project,
Revenue Housing System, 4.75%, 6.00%, 06/01/14 4.20%
03/01/29 4.35% San Antonio Electric & Gas
Frisco Independent School 5.375%, 02/01/15 4.16%
District, 6.50%, 08/15/15 4.28% Massachusetts State Health &
Cook County Township High School Education Facilities Authority
District, 5.50%, 12/01/19 4.27% (Partners Healthcare),
Bridgeport, Series A, 6.00%, Series C, 5.75%, 07/01/12 4.15%
07/15/14 4.26% Massachusetts State Construction
Hartland School District Loan, Series E, 5.38%, 01/01/17 4.10%
Construction, 6.00%, 05/01/20 4.21% Michigan State Building Authority,
Series III, 5.38%, 10/15/16 4.06%
*A listing of all portfolio holdings can be found on page 49.
- --------------------------------------------------------------------------------
GROWTH OF $10,000 INITIAL
INVESTMENT OVER 10 YEARS
[FLOW CHART]
(DOLLARS IN THOUSANDS)
LEHMAN BROTHERS
MUNICIPAL
CLASS A CLASS S BOND INDEX
------- ------- ---------------
9/30/1994 $ 9,625 $10,000 $10,000.00
3/31/1995 10,036 10,440 10,553.53
9/30/1995 10,527 10,966 11,118.35
3/31/1996 10,768 11,230 11,438.13
9/30/1996 11,039 11,527 11,789.77
3/31/1997 11,260 11,773 12,061.17
9/30/1997 11,939 12,498 12,852.80
3/31/1998 12,341 12,934 13,353.61
9/30/1998 12,831 13,465 13,972.89
3/31/1999 12,942 13,598 14,181.44
9/30/1999 12,568 13,223 13,875.57
3/31/2000 12,754 13,435 14,170.14
9/30/2000 13,180 13,901 14,732.36
3/31/2001 13,992 14,775 15,717.76
9/30/2001 14,370 15,193 16,264.05
3/31/2002 14,316 15,155 16,317.06
9/30/2002 15,576 16,510 17,717.24
3/31/2003 15,668 16,628 17,930.14
9/30/2003 16,158 17,170 18,407.20
3/31/2004 16,477 17,531 18,981.58
9/30/2004 16,520 17,598 19,253.85
The graph reflects an initial investment of $10,000 over a 10 year period and is
based on Class A shares at net asset value. The inception date for Class A
shares of the Fund is April 19, 2004. All performance shown for Class A shares
prior to the inception date is based on the performance of the Class S shares of
the Fund, adjusted to reflect the fees, expenses and maximum sales charges of
Class A shares. The Fund's maximum sales charge is 3.75%. The Fund's total
return includes reinvested dividends and capital gains. The Fund's total return
also includes operating expenses that reduce return, while the total return of
the index does not. The graph does not reflect the deduction of taxes that a
shareholder would pay on fund distributions or redemption of fund shares.
Performance data quoted represents past performance. Past performance is no
guarantee of future results. Investment return and principal value of an
investment will fluctuate so that an investor's shares, when redeemed, may be
worth more or less than their original cost. Current performance may be lower or
higher than performance quoted. Performance of other classes will vary due to
differences in fee structures.
11
================================================================================
MANAGEMENT DISCUSSION AND ANALYSIS
================================================================================
TAMARACK NORTH CAROLINA TAX-FREE BOND FUND
- --------------------------------------------------------------------------------
MARKET COMMENTARY
During the twelve months ending September 30, 2004, interest rates on bonds with
maturities shorter than seven years rose by about 0.50%, and rates on longer
bonds fell slightly. The shorter-term rates rose from the very low levels that
prevailed a year ago in response to the Federal Reserve's change in monetary
policy. The Federal Reserve raised the overnight Fed Funds rate from 1.00% to
1.75% in three moves this summer because it believes the economy is experiencing
a sustainable recovery. Although longer-term bond rates had only a small net
change, interest rates were volatile during the twelve months ending September
30, 2004. Interest rates rose sharply in the spring of 2004 when the economy was
growing rapidly, but then rates declined during the summer as the economy's
growth moderated. The yield differential for longer maturities over shorter
maturities is still unusually large, although less than a year ago.
- --------------------------------------------------------------------------------
PERFORMANCE
The Tamarack North Carolina Tax-Free Bond Fund (Class A, net of fees) had a one
year total return of 1.17%, compared with the Fund's benchmark, the Lehman
Brothers Five-Year Municipal Bond Index, which had a one year total return of
2.04%. The income component of the Fund is slightly less than the benchmark
because of its holdings of relatively low-yielding North Carolina bonds. Of
course the Index, unlike a mutual fund, does not have any fees or expenses, and
cannot be directly purchased by investors. The change in the market value of the
securities held by the Fund actually slightly outperformed the benchmark.
- --------------------------------------------------------------------------------
OUTLOOK
The economy continues to grow, but somewhat sluggishly. The Fed has made it
clear that it plans to raise short-term interest rates to a more neutral level,
although the term neutral is not defined. Inflation remains benign. Rising
short-term interest rates and an expanding economy usually put upward pressure
on interest rates. However, this may be tempered by low inflation and by the
higher yields that are already available on longer maturity bonds.
[PHOTO]
Raye C. Kanzenbach, CFA,
Senior Managing Director
12
================================================================================
MANAGEMENT DISCUSSION AND ANALYSIS
================================================================================
TAMARACK NORTH CAROLINA TAX-FREE BOND FUND
- --------------------------------------------------------------------------------
INVESTMENT OBJECTIVE
High current income that is free from federal income tax and North Carolina
personal income tax, together with relative safety of principal
- --------------------------------------------------------------------------------
BENCHMARK
Lehman Brothers 5 Yr. Municipal Bond Index
- --------------------------------------------------------------------------------
ASSET ALLOCATION
(% OF FUND'S INVESTMENTS)
[PIE CHART]
North Carolina Municipal Obligations 90.9%
Investment Companies 9.1%
- --------------------------------------------------------------------------------
TOP TEN HOLDINGS
(AS OF 9/30/04)
(% OF FUND'S NET ASSETS)
Cumberland County CP, Series A, Duplin County, 5.00%, 09/01/10 3.72%
6.20%, 12/01/17 6.93% North Carolina Municipal Power
Pitt County Public Facilities CP, Agency #1, Catawba Electric
Series A, 5.35%, 04/01/07 4.55% Revenue, 5.25%, 01/01/09 3.72%
University of North Carolina North Carolina Infrastructure CP,
Greensboro Revenue, Series A, 5.00%, 02/01/11 3.70%
4.63%, 04/01/13 3.95% Cumberland County Hospital
North Carolina Medical Care Facilities Revenue, 5.25%,
Community Hospital Revenue 10/01/10 3.68%
Center Project, 5.75%, 06/01/13 3.84% North Carolina Educational
Cabarrus County CP, 5.50%, Facilities Finance Agency Revenue,
04/01/15 3.73% Wake Forest University Project,
5.00%, 11/01/12 3.67%
*A listing of all portfolio holdings can be found on page 51.
- --------------------------------------------------------------------------------
GROWTH OF $10,000 INITIAL
INVESTMENT OVER 10 YEARS
[FLOW CHART]
(DOLLARS IN THOUSANDS)
LEHMAN
BROTHERS
5 YR. MUNI
CLASS A BOND INDEX
------- ----------
9/30/1994 $ 9,625 $10,000.00
3/31/1995 10,029 10,358.31
9/30/1995 10,451 10,889.91
3/31/1996 10,636 11,113.93
9/30/1996 10,777 11,357.76
3/31/1997 11,014 11,579.30
9/30/1997 11,646 12,115.85
3/31/1998 11,993 12,464.26
9/30/1998 12,514 12,934.59
3/31/1999 12,616 13,176.56
9/30/1999 12,429 13,135.71
3/31/2000 12,568 13,293.52
9/30/2000 12,973 13,769.42
3/31/2001 13,654 14,551.64
9/30/2001 14,056 15,098.71
3/31/2002 13,976 15,115.41
9/30/2002 15,037 16,283.80
3/31/2003 15,184 16,604.99
9/30/2003 15,437 17,077.17
3/31/2004 15,577 17,318.52
9/30/2004 15,618 17,426.20
The graph reflects an initial investment of $10,000 over a 10 year period and is
based on Class A shares at net asset value. The Fund's maximum sales charge is
3.75%. The Fund's total return includes reinvested dividends and capital gains.
The Fund's total return also includes operating expenses that reduce return,
while the total return of the index does not. The graph does not reflect the
deduction of taxes that a shareholder would pay on fund distributions or
redemption of fund shares. Performance data quoted represents past performance.
Past performance is no guarantee of future results. Investment return and
principal value of an investment will fluctuate so that an investor's shares,
when redeemed, may be worth more or less than their original cost. Current
performance may be lower or higher than performance quoted. Performance of other
classes will vary due to differences in fee structures.
13
================================================================================
FINANCIAL STATEMENTS
================================================================================
STATEMENTS OF ASSETS AND LIABILITIES
- --------------------------------------------------------------------------------
SEPTEMBER 30, 2004
TAMARACK
TAMARACK NORTH
TAMARACK QUALITY TAMARACK CAROLINA
GOVERNMENT FIXED TAX-FREE TAX-FREE
INCOME INCOME INCOME BOND
FUND FUND FUND FUND
------------- ------------- ------------- -------------
ASSETS:
Investments, at market
value (cost $19,755,969;
$106,503,803;
$25,256,913 and
$13,905,776, respectively) $ 19,639,512 $ 109,597,010 $ 27,322,446 $ 14,665,906
Interest and dividends
receivable 174,928 1,132,760 319,586 204,194
Cash 25,519 - - 176,215
Receivable for capital
shares issued 5,192 1,324 - -
Receivable for investments
sold - 252,382 - -
Receivable from advisor 39,468 38,084 - 23,081
Prepaid expenses 17,673 29,633 10,953 7,062
------------- ------------- ------------- -------------
Total Assets 19,902,292 111,051,193 27,652,985 15,076,458
------------- ------------- ------------- -------------
LIABILITIES:
Distributions payable 15,271 415,251 78,150 25,961
Payable for capital shares
redeemed 2,575 171,586 2,574 192,177
Payable for investments
purchased - 855,221 - -
Accrued expenses and
other payables:
Investment advisory fees - - 41,321 -
Administration fees 1,676 9,178 2,261 1,235
Distribution fees 4,394 829 131 4,319
Other 25,195 50,672 27,288 19,572
------------- ------------- ------------- -------------
Total Liabilities 49,111 1,502,737 151,725 243,264
------------- ------------- ------------- -------------
Net Assets $ 19,853,181 $ 109,548,456 $ 27,501,260 $ 14,833,194
============= ============= ============= =============
NET ASSETS CONSIST OF:
Capital $ 19,870,478 $ 111,022,237 $ 24,754,445 $ 13,502,332
Undistributed (distributions
in excess of) net
investment income 36,951 (122,777) 24 4,527
Accumulated net realized
gains (losses) from
investment transactions 62,209 (4,444,211) 681,258 566,205
Net unrealized appreciation
(depreciation) on
investments (116,457) 3,093,207 2,065,533 760,130
------------- ------------- ------------- -------------
Net Assets $ 19,853,181 $ 109,548,456 $ 27,501,260 $ 14,833,194
============= ============= ============= =============
14
================================================================================
FINANCIAL STATEMENTS
================================================================================
STATEMENTS OF ASSETS AND LIABILITIES (CONT.)
- --------------------------------------------------------------------------------
TAMARACK
TAMARACK NORTH
TAMARACK QUALITY TAMARACK CAROLINA
GOVERNMENT FIXED TAX-FREE TAX-FREE
INCOME INCOME INCOME BOND
FUND FUND FUND FUND
------------ ------------ ------------ ------------
NET ASSETS:
Class A $ 6,307,882 $ 1,256,727 $ 165,873 $ 6,708,861
Class I 13,512,278 18,989,999 - 8,124,333
Class C 3,296 3,331 3,328 -
Class R 26,417 20,418 3,335 -
Class S 3,308 89,277,981 27,328,724 -
------------ ------------ ------------ ------------
Total $ 19,853,181 $109,548,456 $ 27,501,260 $ 14,833,194
============ ============ ============ ============
SHARES OUTSTANDING:
Class A 604,005 128,593 17,823 651,947
Class I 1,294,151 1,943,649 - 789,386
Class C 316 341 357 -
Class R 2,529 2,090 358 -
Class S 317 9,136,407 2,934,614 -
------------ ------------ ------------ ------------
Total 1,901,318 11,211,080 2,953,152 1,441,333
============ ============ ============ ============
NET ASSET VALUES:
Class A (a) $ 10.44 $ 9.77 $ 9.31 $ 10.29
============ ============ ============ ============
Class I $ 10.44 $ 9.77 - $ 10.29
============ ============ ============ ============
Class C (b) $ 10.44 $ 9.77 $ 9.31 -
============ ============ ============ ============
Class R $ 10.45 $ 9.77 $ 9.31 -
============ ============ ============ ============
Class S $ 10.43 $ 9.77 $ 9.31 -
============ ============ ============ ============
MAXIMUM OFFERING PRICE
PER SHARE:
Class A $ 10.85 $ 10.15 $ 9.67 $ 10.69
============ ============ ============ ============
Maximum Sales Charge --
Class A 3.75% 3.75% 3.75% 3.75%
============ ============ ============ ============
(a) For Class A shares, redemption price per share is reduced by 1.00% for
sales of shares within 12 months of purchase (only applicable on purchases
of $1 million or more).
(b) For Class C shares, redemption price per share is reduced by 1.00% for
sales of shares within 12 months of purchase.
SEE NOTES TO FINANCIAL STATEMENTS.
15
================================================================================
FINANCIAL STATEMENTS
================================================================================
STATEMENTS OF OPERATIONS
- --------------------------------------------------------------------------------
TAMARACK GOVERNMENT
INCOME FUND
FOR THE FOR THE
PERIOD ENDED YEAR ENDED
SEPTEMBER 30, 2004 (a) APRIL 30, 2004
------------------------ ---------------
INVESTMENT INCOME:
Interest income $ 316,140 $ 882,810
Dividend income 1,329 3,090
----------- -----------
Total Investment Income 317,469 885,900
----------- -----------
EXPENSES:
Investment advisory fees 28,221 78,642
Administration Fees 9,407 38,912
Distribution fees - Class A 13,249 29,966
Distribution fees - Class B (b) - 4,638
Distribution fees - Class C 14 1
Distribution fees - Class R 10 -
Accounting fees 1,871 34,108
Custodian fees 14 1,603
Legal and Audit fees 26,131 28,226
Registration and filing fees 32,409 28,859
Shareholder reports 562 6,706
Transfer agent fees 24,054 31,582
Trustees' fees 14,149 2,073
Other fees 2,236 9,087
----------- -----------
Total expenses before voluntary fee reductions 152,327 294,403
Expenses voluntarily reduced by:
Advisor (58,690) (7,464)
Distributor (6,625) (16,143)
----------- -----------
Net Expenses 87,012 270,796
----------- -----------
NET INVESTMENT INCOME 230,457 615,104
----------- -----------
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
Net realized gains (losses) from investment transactions (79,863) 1,567,509
Net change in unrealized appreciation (depreciation) on
investments 275,748 (2,171,469)
----------- -----------
Net realized/unrealized gains (losses) from investments 195,885 (603,960)
----------- -----------
Change in net assets resulting from operations $ 426,342 $ 11,144
=========== ===========
(a) For the period from May 1, 2004 to September 30, 2004.
(b) Class B shares were converted to Class A shares on March 24, 2004.
SEE NOTES TO FINANCIAL STATEMENTS.
16
================================================================================
FINANCIAL STATEMENTS
================================================================================
STATEMENTS OF OPERATIONS (CONT.)
- --------------------------------------------------------------------------------
TAMARACK QUALITY
FIXED INCOME FUND
FOR THE FOR THE
PERIOD ENDED YEAR ENDED
SEPTEMBER 30, 2004 (a) APRIL 30, 2004
------------------------ ---------------
INVESTMENT INCOME:
Interest income $ 2,479,563 $ 2,153,719
Dividend income 8,872 4,931
----------- -----------
Total Investment Income 2,488,435 2,158,650
----------- -----------
EXPENSES:
Investment advisory fees 296,876 277,687
Administration Fees 49,479 62,570
Distribution fees - Class A 2,467 3,917
Distribution fees - Class B (b) - 1,081
Distribution fees - Class C 14 1
Distribution fees - Class R 9 -
Accounting fees 13,605 43,191
Custodian fees 14,664 2,818
Legal and Audit fees 34,761 38,159
Registration and filing fees 31,455 25,034
Shareholder reports 11,456 4,725
Transfer agent fees 76,420 30,971
Trustees' fees 17,014 2,082
Other fees 9,751 12,884
----------- -----------
Total expenses before voluntary fee reductions 557,971 505,120
Expenses voluntarily reduced by:
Advisor (219,487) (8,407)
Distributor (1,233) (2,228)
----------- -----------
Net Expenses 337,251 494,485
----------- -----------
NET INVESTMENT INCOME 2,151,184 1,664,165
----------- -----------
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
Net realized gains (losses) from investment transactions 152,540 (260,959)
Net change in unrealized appreciation (depreciation) on
investments 1,283,564 (1,540,439)
----------- -----------
Net realized/unrealized gains (losses) from investments 1,436,104 (1,801,398)
----------- -----------
Change in net assets resulting from operations $ 3,587,288 $ (137,233)
=========== ===========
(a) For the period from May 1, 2004 to September 30, 2004.
(b) Class B shares were converted to Class A shares on March 24, 2004.
SEE NOTES TO FINANCIAL STATEMENTS.
17
================================================================================
FINANCIAL STATEMENTS
================================================================================
STATEMENTS OF OPERATIONS (CONT.)
- --------------------------------------------------------------------------------
TAMARACK TAX-FREE
INCOME FUND
FOR THE FOR THE
PERIOD ENDED YEAR ENDED
SEPTEMBER 30, 2004 (a) JUNE 30, 2004
------------------------ --------------
INVESTMENT INCOME:
Interest income $ 313,198 $ 1,526,979
Dividend income 3,202 925
----------- -----------
Total Investment Income 316,400 1,527,904
----------- -----------
EXPENSES:
Investment advisory fees 60,094 291,635
Administration Fees 7,070 34,309
Distribution fees - Class A 196 22
Distribution fees - Class C 8 6
Distribution fees - Class R 4 3
Accounting fees 1,164 17,585
Custodian fees 65 3,439
Legal and Audit fees 15,488 24,796
Registration and filing fees 83 51,963
Shareholder reports 1,224 8,212
Transfer agent fees 9,032 17,491
Trustees' fees 5,015 11,795
Other fees 1,942 1,936
----------- -----------
Total expenses before voluntary fee reductions 101,385 463,192
Expenses voluntarily reduced by:
Advisor (31,185) (124,206)
Distributor (98) (11)
----------- -----------
Net Expenses 70,102 338,975
----------- -----------
NET INVESTMENT INCOME 246,298 1,188,929
----------- -----------
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
Net realized gains (losses) from investment transactions 137,838 892,790
Net change in unrealized appreciation (depreciation) on
investments 676,192 (2,323,243)
----------- -----------
Net realized/unrealized gains (losses) from investments 814,030 (1,430,453)
----------- -----------
Change in net assets resulting from operations $ 1,060,328 $ (241,524)
=========== ===========
(a) For the period from July 1, 2004 to September 30, 2004.
SEE NOTES TO FINANCIAL STATEMENTS.
18
================================================================================
FINANCIAL STATEMENTS
================================================================================
STATEMENTS OF OPERATIONS (CONT.)
- --------------------------------------------------------------------------------
TAMARACK NORTH CAROLINA
TAX-FREE BOND FUND
FOR THE FOR THE
PERIOD ENDED YEAR ENDED
SEPTEMBER 30, 2004 (a) APRIL 30, 2004
------------------------ ---------------
INVESTMENT INCOME:
Interest income $ 283,421 $ 992,150
Dividend income 2,986 6,517
----------- -----------
Total Investment Income 286,407 998,667
----------- -----------
EXPENSES:
Investment advisory fees 24,396 79,857
Administration Fees 6,970 33,917
Distribution fees - Class A 12,862 23,223
Distribution fees - Class B (b) - 2,815
Distribution fees - Class C - -
Distribution fees - Class R - -
Accounting fees 2,515 34,890
Custodian fees 92 1,530
Legal and Audit fees 24,996 26,752
Registration and filing fees 10,909 10,668
Shareholder reports 171 5,221
Transfer agent fees 3,932 21,274
Trustees' fees 14,577 1,527
Other fees 1,050 8,055
----------- -----------
Total expenses before voluntary fee reductions 102,470 249,729
Expenses voluntarily reduced by:
Advisor (27,403) (6,505)
Distributor (6,431) (12,315)
----------- -----------
Net Expenses 68,636 230,909
----------- -----------
NET INVESTMENT INCOME 217,771 767,758
----------- -----------
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
Net realized gains (losses) from investment transactions 150,538 675,415
Net change in unrealized appreciation (depreciation) on
investments (13,655) (1,239,107)
----------- -----------
Net realized/unrealized gains (losses) from investments 136,883 (563,692)
----------- -----------
Change in net assets resulting from operations $ 354,654 $ 204,066
=========== ===========
(a) For the period from May 1, 2004 to September 30, 2004.
(b) Class B shares were converted to Class A shares on March 24, 2004.
SEE NOTES TO FINANCIAL STATEMENTS.
19
================================================================================
FINANCIAL STATEMENTS
================================================================================
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
TAMARACK GOVERNMENT
INCOME FUND
FOR THE FOR THE FOR THE
PERIOD ENDED YEAR ENDED YEAR ENDED
SEPTEMBER 30, 2004 (a) APRIL 30, 2004 APRIL 30, 2003
------------------------ ----------------------- ---------------
FROM INVESTMENT ACTIVITIES:
Operations:
Net investment income $ 230,457 $ 615,104 $ 1,225,319
Net realized gains (losses) from investment
transactions (79,863) 1,567,509 1,061,545
Net change in unrealized appreciation
(depreciation) on investments 275,748 (2,171,469) 569,204
------------ ------------ ------------
Change in net assets from operations 426,342 11,144 2,856,068
------------ ------------ ------------
DISTRIBUTIONS TO CLASS A SHAREHOLDERS:
From net investment income (50,182) (130,831) (204,394)
From net realized gains from investment
transactions - (127,056) -
DISTRIBUTIONS TO CLASS B SHAREHOLDERS: (C)
From net investment income - (7,830) (16,464)
From net realized gains from investment
transactions - (10,833) -
DISTRIBUTIONS TO CLASS I SHAREHOLDERS:
From net investment income (147,719) (482,857) (1,004,461)
From net realized gains from investment
transactions - (350,792) -
DISTRIBUTIONS TO CLASS C SHAREHOLDERS:
From net investment income (16) (1) (b) -
DISTRIBUTIONS TO CLASS R SHAREHOLDERS:
From net investment income (23) (2) (b) -
DISTRIBUTIONS TO CLASS S SHAREHOLDERS:
From net investment income (34) (2) (b) -
From net realized gains from investment
transactions - - -
------------ ------------ ------------
Change in net assets from shareholder
distributions (197,974) (1,110,204) (1,225,319)
------------ ------------ ------------
CAPITAL TRANSACTIONS:
Proceeds from shares issued 1,439,183 13,366,595 18,519,228
Proceeds from shares exchanged from
Class B (c) - 414,882 -
Proceeds from shares issued in connection
with merger - - -
Dividends reinvested 137,144 858,032 640,450
Cost of shares redeemed (6,345,106) (19,928,660) (19,436,211)
Cost of shares exchanged to Class A - (414,882) -
------------ ------------ ------------
Change in net assets from capital transactions (4,768,779) (5,704,033) (276,533)
------------ ------------ ------------
Net increase (decrease) in net assets (4,540,411) (6,803,093) 1,354,216
NET ASSETS:
Beginning of year 24,393,592 31,196,685 29,842,469
------------ ------------ ------------
End of year $ 19,853,181 $ 24,393,592 $ 31,196,685
============ ============ ============
Undistributed (distributions in excess of)
net investment income $ 36,951 $ - $ -
============ ============ ============
SHARE TRANSACTIONS:
Issued 140,084 1,265,266 1,749,231
Issued in connection with exchange from
Class B (c) - 38,956 -
Issued in connection with merger - - -
Reinvested 13,284 81,267 60,389
Redeemed (614,069) (1,872,481) (1,829,882)
Cost of shares exchanged to Class A - (38,956) -
------------ ------------ ------------
Change in shares from capital transactions (460,701) (525,948) (20,262)
============ ============ ============
(a) For the period from May 1, 2004 to September 30, 2004.
(b) For the period from April 19, 2004 (commencement of operations) to April
30, 2004.
(c) Class B shares were converted to Class A shares on March 24, 2004.
SEE NOTES TO FINANCIAL STATEMENTS.
20
================================================================================
FINANCIAL STATEMENTS
================================================================================
STATEMENT OF CHANGES IN NET ASSETS (CONT.)
- --------------------------------------------------------------------------------
TAMARACK QUALITY FIXED
INCOME FUND
FOR THE FOR THE FOR THE
PERIOD ENDED YEAR ENDED YEAR ENDED
SEPTEMBER 30, 2004 (a) APRIL 30, 2004 APRIL 30, 2003
------------------------ ------------------- ---------------
FROM INVESTMENT ACTIVITIES:
Operations:
Net investment income $ 2,151,184 $ 1,664,165 $ 2,325,888
Net realized gains (losses) from investment
transactions 152,540 (260,959) 916,167
Net change in unrealized appreciation
(depreciation) on investments 1,283,564 (1,540,439) 1,645,732
------------- ------------- -------------
Change in net assets from operations 3,587,288 (137,233) 4,887,787
------------- ------------- -------------
DISTRIBUTIONS TO CLASS A SHAREHOLDERS:
From net investment income (21,161) (32,451) (21,149)
From net realized gains from investment
transactions - (32,077) (517)
DISTRIBUTIONS TO CLASS B SHAREHOLDERS: (C)
From net investment income - (3,859) (4,338)
From net realized gains from investment
transactions - (4,231) (128)
DISTRIBUTIONS TO CLASS I SHAREHOLDERS:
From net investment income (490,898) (1,686,514) (2,445,484)
From net realized gains from investment
transactions - (1,176,613) (61,931)
DISTRIBUTIONS TO CLASS C SHAREHOLDERS:
From net investment income (49) (3)(b) -
DISTRIBUTIONS TO CLASS R SHAREHOLDERS:
From net investment income (71) (4)(b) -
DISTRIBUTIONS TO CLASS S SHAREHOLDERS:
From net investment income (1,735,478) (140,849)(b) -
From net realized gains from investment
transactions - - -
------------- ------------- -------------
Change in net assets from shareholder
distributions (2,247,657) (3,076,601) (2,533,547)
------------- ------------- -------------
CAPITAL TRANSACTIONS:
Proceeds from shares issued 3,003,365 12,337,231 14,829,282
Proceeds from shares exchanged from
Class B (c) - 122,283 -
Proceeds from shares issued in connection
with merger - 99,512,062 -
Dividends reinvested 1,518,201 1,468,997 802,986
Cost of shares redeemed (25,674,691) (29,015,385) (35,226,442)
Cost of shares exchanged to Class A - (122,283) -
------------- ------------- -------------
Change in net assets from capital transactions (21,153,125) 84,302,905 (19,594,174)
------------- ------------- -------------
Net increase (decrease) in net assets (19,813,494) 81,089,071 (17,239,934)
NET ASSETS:
Beginning of year 129,361,950 48,272,879 65,512,813
------------- ------------- -------------
End of year $ 109,548,456 $ 129,361,950 $ 48,272,879
============= ============= =============
Undistributed (distributions in excess of) net
investment income ($ 122,777) ($ 108,656) ($ 110,040)
============= ============= =============
SHARE TRANSACTIONS:
Issued 311,318 1,230,858 1,475,219
Issued in connection with exchange from
Class B (c) - 12,253 -
Issued in connection with merger - 10,207,207 -
Reinvested 157,492 147,778 79,935
Redeemed (2,665,994) (2,877,062) (3,512,536)
Cost of shares exchanged to Class A - (12,253) -
------------- ------------- -------------
Change in shares from capital transactions (2,197,184) 8,708,781 (1,957,382)
============= ============= =============
(a) For the period from May 1, 2004 to September 30, 2004.
(b) For the period from April 19, 2004 (commencement of operations) to April
30, 2004.
(c) Class B shares were converted to Class A shares on March 24, 2004.
SEE NOTES TO FINANCIAL STATEMENTS.
21
================================================================================
FINANCIAL STATEMENTS
================================================================================
STATEMENT OF CHANGES IN NET ASSETS (CONT.)
- --------------------------------------------------------------------------------
TAMARACK TAX-FREE
INCOME FUND
FOR THE FOR THE FOR THE
PERIOD ENDED YEAR ENDED YEAR ENDED
SEPTEMBER 30, 2004 (a) JUNE 30, 2004 JUNE 30, 2003
------------------------ ------------------- --------------
FROM INVESTMENT ACTIVITIES:
Operations:
Net investment income $ 246,298 $ 1,188,929 $ 1,418,331
Net realized gains (losses) from investment
transactions 137,838 892,790 85,966
Net change in unrealized appreciation
(depreciation) on investments 676,192 (2,323,243) 1,729,584
------------ ------------ ------------
Change in net assets from operations 1,060,328 (241,524) 3,233,881
------------ ------------ ------------
DISTRIBUTIONS TO CLASS A SHAREHOLDERS:
From net investment income (1,256) (146)(b) -
From net realized gains from investment
transactions - - -
DISTRIBUTIONS TO CLASS B SHAREHOLDERS:
From net investment income - - -
From net realized gains from investment
transactions - - -
DISTRIBUTIONS TO CLASS I SHAREHOLDERS:
From net investment income - - -
From net realized gains from investment
transactions - - -
DISTRIBUTIONS TO CLASS C SHAREHOLDERS:
From net investment income (21) (17)(b) -
DISTRIBUTIONS TO CLASS R SHAREHOLDERS:
From net investment income (25) (20)(b) -
DISTRIBUTIONS TO CLASS S SHAREHOLDERS:
From net investment income (244,996) (1,188,746) (1,418,350)
From net realized gains from investment
transactions - (435,336) (56,360)
------------ ------------ ------------
Change in net assets from shareholder
distributions (246,298) (1,624,265) (1,474,710)
------------ ------------ ------------
CAPITAL TRANSACTIONS:
Proceeds from shares issued 142,781 4,152,298 7,305,576
Proceeds from shares exchanged from Class
B - - -
Proceeds from shares issued in connection
with merger - - -
Dividends reinvested 161,025 998,654 899,810
Cost of shares redeemed (1,841,869) (14,104,416) (7,356,230)
Cost of shares exchanged to Class A - - -
------------ ------------ ------------
Change in net assets from capital transactions (1,538,063) (8,953,464) 849,156
------------ ------------ ------------
Net increase (decrease) in net assets (724,033) (10,819,253) 2,608,327
NET ASSETS:
Beginning of year 28,225,293 39,044,546 36,436,219
------------ ------------ ------------
End of year $ 27,501,260 $ 28,225,293 $ 39,044,546
============ ============ ============
Undistributed (distributions in excess of) net
investment income $ 24 $ 24 ($ 47)
============ ============ ============
SHARE TRANSACTIONS:
Issued 15,621 446,712 779,423
Issued in connection with exchange from
Class B - - -
Issued in connection with merger - - -
Reinvested 17,559 106,506 96,018
Redeemed (198,931) (1,512,177) (781,986)
Cost of shares exchanged to Class A - - -
------------ ------------ ------------
Change in shares from capital transactions (165,751) (958,959) 93,455
============ ============ ============
(a) For the period from July 1, 2004 to September 30, 2004.
(b) For the period from April 19, 2004 (commencement of operations) to June 30,
2004.
SEE NOTES TO FINANCIAL STATEMENTS.
22
================================================================================
FINANCIAL STATEMENTS
================================================================================
STATEMENT OF CHANGES IN NET ASSETS (CONT.)
- --------------------------------------------------------------------------------
TAMARACK NORTH CAROLINA
TAX-FREE BOND FUND
FOR THE FOR THE FOR THE
PERIOD ENDED YEAR ENDED YEAR ENDED
SEPTEMBER 30, 2004 (a) APRIL 30, 2004 APRIL 30, 2003
------------------------ ---------------- ---------------
FROM INVESTMENT ACTIVITIES:
Operations:
Net investment income $ 217,771 $ 767,758 $ 1,012,731
Net realized gains (losses) from investment
transactions 150,538 675,415 276,307
Net change in unrealized appreciation
(depreciation) on investments (13,655) (1,239,107) 662,001
------------ ------------ ------------
Change in net assets from operations 354,654 204,066 1,951,039
------------ ------------ ------------
DISTRIBUTIONS TO CLASS A SHAREHOLDERS:
From net investment income (66,312) (146,821) (152,357)
From net realized gains from investment
transactions - (100,609) (17,628)
DISTRIBUTIONS TO CLASS B SHAREHOLDERS: (B)
From net investment income - (7,557) (12,581)
From net realized gains from investment
transactions - (5,786) (1,713)
DISTRIBUTIONS TO CLASS I SHAREHOLDERS:
From net investment income (126,963) (613,380) (847,793)
From net realized gains from investment
transactions - (342,026) (91,581)
DISTRIBUTIONS TO CLASS C SHAREHOLDERS:
From net investment income - - -
DISTRIBUTIONS TO CLASS R SHAREHOLDERS:
From net investment income - - -
DISTRIBUTIONS TO CLASS S SHAREHOLDERS:
From net investment income - - -
From net realized gains from investment
transactions - - -
------------ ------------ ------------
Change in net assets from shareholder
distributions (193,275) (1,216,179) (1,123,653)
------------ ------------ ------------
CAPITAL TRANSACTIONS:
Proceeds from shares issued 1,674,145 3,577,313 3,005,523
Proceeds from shares exchanged from
Class B (b) - 279,994 -
Proceeds from shares issued in connection
with merger - - -
Dividends reinvested 62,894 493,419 279,172
Cost of shares redeemed (5,521,209) (10,597,289) (9,055,257)
Cost of shares exchanged to Class A - (279,994) -
------------ ------------ ------------
Change in net assets from capital transactions (3,784,170) (6,526,557) (5,770,562)
------------ ------------ ------------
Net increase (decrease) in net assets (3,622,791) (7,538,670) (4,943,176)
NET ASSETS:
Beginning of year 18,455,985 29,994,655 30,937,831
------------ ------------ ------------
End of year $ 14,833,194 $ 18,455,985 $ 25,994,655
============ ============ ============
Undistributed (distributions in excess of) net
investment income $ 4,527 ($ 19,969) ($ 19,969)
============ ============ ============
SHARE TRANSACTIONS:
Issued 165,209 339,762 283,408
Issued in connection with exchange from
Class B (b) - 26,768 -
Issued in connection with merger - - -
Reinvested 6,168 47,068 26,293
Redeemed (541,728) (1,005,051) (856,700)
Cost of shares exchanged to Class A - (26,742) -
------------ ------------ ------------
Change in shares from capital transactions (370,351) (618,195) (546,999)
============ ============ ============
(a) For the period from May 1, 2004 to September 30, 2004.
(b) Class B shares were converted to Class A shares on March 24, 2004.
SEE NOTES TO FINANCIAL STATEMENTS.
23
================================================================================
FINANCIAL HIGHLIGHTS
================================================================================
TAMARACK GOVERNMENT INCOME FUND
- --------------------------------------------------------------------------------
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD INDICATED)
PERIOD ENDED YEAR ENDED APRIL 30,
SEPT. 30, --------------------------------------------------------------------
2004 (d) 2004 2003 2002 2001 2000
-------- -------- -------- -------- -------- --------
CLASS A
- -------
Net Asset Value, Beginning of $ 10.33 $ 10.80 $ 10.26 $ 10.14 $ 9.66 $ 10.03
Period
INVESTMENT ACTIVITIES:
Net Investment Income 0.10 0.23 0.38 0.51 0.56 0.50
Net Realized and Unrealized 0.09 (0.24) 0.54 0.12 0.48 (0.33)
Gains (Losses) on Investments -------- -------- -------- -------- -------- --------
Total from Investment Activities 0.19 (0.01) 0.92 0.63 1.04 0.17
DISTRIBUTIONS:
Net Investment Income (0.08) (0.23) (0.38) (0.51) (0.56) (0.50)
Net Realized Gains - (0.23) - - - (0.04)
-------- -------- -------- -------- -------- --------
Total Distributions (0.08) (0.46) (0.38) (0.51) (0.56) (0.54)
-------- -------- -------- -------- -------- --------
Net Asset Value, End of Period $ 10.44 $ 10.33 $ 10.80 $ 10.26 $ 10.14 $ 9.66
Total Return* 1.87%(a) (0.05%) 9.07% 6.28% 11.01% 1.73%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000's) $ 6,308 $ 6,063 $ 6,233 $ 5,113 $ 5,139 $ 4,493
Ratio of Expenses to Average Net 1.10%(b) 1.22% 1.08% 1.04% 0.93% 0.88%
Assets
Ratio of Net Investment Income 2.27%(b) 2.16% 3.55% 4.93% 5.61% 5.13%
to Average Net Assets
Ratio of Expenses to Average Net 2.02%(b) 1.50% 1.33% 1.29% 1.18% 1.13%
Assets**
Portfolio Turnover*** 13% 77% 67% 35% 103% 60%
CLASS I
- -------
Net Asset Value, Beginning of $ 10.33 $ 10.80 $ 10.26 $ 10.14 $ 9.66 $ 10.03
Period
INVESTMENT ACTIVITIES:
Net Investment Income 0.11 0.26 0.40 0.53 0.58 0.53
Net Realized and Unrealized 0.09 (0.24) 0.54 0.12 0.48 (0.33)
Gains (Losses) on Investments -------- -------- -------- -------- -------- --------
Total from Investment Activities 0.20 0.02 0.94 0.65 1.06 0.20
DISTRIBUTIONS:
Net Investment Income (0.09) (0.26) (0.40) (0.53) (0.58) (0.53)
Net Realized Gains - (0.23) - - - (0.04)
-------- -------- -------- -------- -------- --------
Total Distributions (0.09) (0.49) (0.40) (0.53) (0.58) (0.57)
-------- -------- -------- -------- -------- --------
Net Asset Value, End of Period $ 10.44 $ 10.33 $ 10.80 $ 10.26 $ 10.14 $ 9.66
Total Return* 1.97%(a) 0.20% 9.34% 6.55% 11.29% 1.99%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000's) $ 13,512 $ 18,321 $ 24,375 $ 24,308 $ 33,859 $ 43,486
Ratio of Expenses to Average Net 0.85%(b) 0.96% 0.83% 0.79% 0.68% 0.63%
Assets
Ratio of Net Investment Income 2.52%(b) 2.42% 3.82% 5.19% 5.87% 5.31%
to Average Net Assets
Ratio of Expenses to Average Net 1.46%(b) 0.99% (c) (c) (c) (c)
Assets**
Portfolio Turnover*** 13% 77% 67% 35% 103% 60%
SEE NOTES TO FINANCIAL STATEMENTS.
24
================================================================================
FINANCIAL HIGHLIGHTS
================================================================================
PERIOD ENDED
SEPT. 30, APRIL 30,
2004 (d) 2004 (e)
---------------- ------------------
CLASS C
- -------
Net Asset Value, $10.33 $10.43
Beginning of Period
INVESTMENT ACTIVITIES:
Net Investment Income 0.07 -
Net Realized and 0.09 (0.10)
Unrealized Gains
(Losses) on
Investments ------ ------
Total from Investment 0.16 (0.10)
Activities
DISTRIBUTIONS:
Net Investment Income (0.05) -
Net Realized Gains - -
------ ------
Total Distributions (0.05) -
------ ------
Net Asset Value, End of $10.44 $10.33
Period
Total Return* 1.56%(a) (0.92%)(a)
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of $ 3 $ 3
Period (000's)
Ratio of Expenses to 1.85%(b) 2.02%(b)
Average Net Assets
Ratio of Net Investment 1.52%(b) 1.23%(b)
Income to Average
Net Assets
Ratio of Expenses to 2.55%(b) 2.25%(b)
Average Net
Assets**
Portfolio Turnover*** 13% 77%
CLASS R
- -------
Net Asset Value, $10.33 $10.43
Beginning of Period
INVESTMENT ACTIVITIES:
Net Investment Income 0.07 0.01
Net Realized and 0.12 (0.10)
Unrealized Gains
(Losses) on
Investments
------ ------
Total from Investment 0.19 (0.09)
Activities
DISTRIBUTIONS:
Net Investment Income (0.07) (0.01)
Net Realized Gains - -
------ ------
Total Distributions (0.07) (0.01)
------ ------
Net Asset Value, End of $10.45 $10.33
Period
Total Return* 1.85%(a) (0.90%)(a)
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of $ 26 $ 3
Period (000's)
Ratio of Expenses to 1.35%(b) 1.46%(b)
Average Net Assets
Ratio of Net Investment 1.68%(b) 1.75%(b)
Income to Average
Net Assets
Ratio of Expenses to 2.46%(b) 1.61%(b)
Average Net
Assets**
Portfolio Turnover*** 13% 77%
PERIOD ENDED
SEPT. 30, APRIL 30,
2004 (d) 2004 (e)
---------------- ------------------
CLASS S
- -------
Net Asset Value, $10.32 $10.42
Beginning of Period
INVESTMENT ACTIVITIES:
Net Investment Income 0.11 0.01
Net Realized and 0.09 (0.10)
Unrealized Gains
(Losses) on
Investments ------ ------
Total from Investment 0.20 (0.09)
Activities
DISTRIBUTIONS:
Net Investment Income (0.09) (0.01)
Net Realized Gains - -
------ ------
Total Distributions (0.09) (0.01)
------ ------
Net Asset Value, End of $10.43 $10.32
Period
Total Return* 1.97%(a) (0.89%)(a)
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of $ 3 $ 3
Period (000's)
Ratio of Expenses to 0.85%(b) 1.01%(b)
Average Net Assets
Ratio of Net Investment 2.54%(b) 2.17%(b)
Income to Average
Net Assets
Ratio of Expenses to 1.48%(b) 1.23%(b)
Average Net
Assets**
Portfolio Turnover*** 13% 77%
* Excludes sales charge.
** During the period, certain fees were voluntarily reduced. If such
voluntary fee reductions had not occurred, the ratio would have been as
indicated.
*** Portfolio turnover is calculated on the basis of the fund as a whole
without distinguishing between the classes of shares issued.
(a) Not annualized.
(b) Annualized.
(c) There were no waivers or reimbursements during the period.
(d) For the period from May 1, 2004 to September 30, 2004.
(e) For the period from April 19, 2004 (commencement of operations) to April
30, 2004.
SEE NOTES TO FINANCIAL STATEMENTS.
25
================================================================================
FINANCIAL HIGHLIGHTS
================================================================================
TAMARACK QUALITY FIXED INCOME FUND
- --------------------------------------------------------------------------------
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD INDICATED)
PERIOD ENDED YEAR ENDED APRIL 30,
SEPT. 30, ----------------------------------------------------------------------
2004 (d) 2004 2003 2002 2001 2000 (e)
---------- ---------- ---------- ---------- ---------- ----------
CLASS A
- -------
Net Asset Value, Beginning of $ 9.65 $ 10.27 $ 9.84 $ 10.06 $ 9.50 $ 10.00
Period
INVESTMENT ACTIVITIES:
Net Investment Income 0.16 0.38 0.41 0.51 0.58 0.50
Net Realized and Unrealized 0.13 (0.25) 0.47 (0.15) 0.58 (0.50)
Gains (Losses) on Investments ---------- ---------- ---------- ---------- ---------- ----------
Total from Investment Activities 0.29 0.13 0.88 0.36 1.16 -
DISTRIBUTIONS:
Net Investment Income (0.17) (0.41) (0.44) (0.52) (0.58) (0.50)
Net Realized Gains - (0.34) (0.01) (0.06) (0.02) -
---------- ---------- ---------- ---------- ---------- ----------
Total Distributions (0.17) (0.75) (0.45) (0.58) (0.60) (0.50)
---------- ---------- ---------- ---------- ---------- ----------
Net Asset Value, End of Period $ 9.77 $ 9.65 $ 10.27 $ 9.84 $ 10.06 $ 9.50
Total Return* 2.96%(a) 1.39% 9.09% 3.67% 12.46% 0.03%(a)
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000's) $ 1,257 $ 1,128 $ 501 $ 493 $ 324 $ 240
Ratio of Expenses to Average Net 0.93%(b) 1.42% 1.31% 1.22% 1.16% 1.34%(b)
Assets
Ratio of Net Investment Income 4.07%(b) 3.56% 4.03% 5.03% 5.88% 5.50%(b)
to Average Net Assets
Ratio of Expenses to Average Net 1.64%(b) 1.68% 1.56% 1.47% 1.41% 1.59%(b)
Assets**
Portfolio Turnover*** 13% 87% 79% 88% 130% 314%
CLASS I
- -------
Net Asset Value, Beginning of $ 9.65 $ 10.27 $ 9.84 $ 10.06 $ 9.50 $ 10.00
Period
INVESTMENT ACTIVITIES:
Net Investment Income 0.17 0.37 0.42 0.54 0.60 0.52
Net Realized and Unrealized 0.13 (0.21) 0.48 (0.15) 0.58 (0.50)
Gains (Losses) on Investments ---------- ---------- ---------- ---------- ---------- ----------
Total from Investment Activities 0.30 0.16 0.90 0.39 1.18 0.02
DISTRIBUTIONS:
Net Investment Income (0.18) (0.44) (0.46) (0.55) (0.60) (0.52)
Net Realized Gains - (0.34) (0.01) (0.06) (0.02) -
---------- ---------- ---------- ---------- ---------- ----------
Total Distributions (0.18) (0.78) (0.47) (0.61) (0.62) (0.52)
---------- ---------- ---------- ---------- ---------- ----------
Net Asset Value, End of Period $ 9.77 $ 9.65 $ 10.27 $ 9.84 $ 10.06 $ 9.50
Total Return* 3.18%(a) 1.54% 9.33% 3.93% 12.74% 0.20%(a)
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000's) $ 18,990 $ 30,990 $ 47,658 $ 64,912 $ 77,808 $ 69,558
Ratio of Expenses to Average Net 0.68%(b) 1.18% 1.06% 0.97% 0.91% 1.09%(b)
Assets
Ratio of Net Investment Income 4.39%(b) 3.83% 4.30% 5.34% 6.10% 5.65%(b)
to Average Net Assets
Ratio of Expenses to Average Net 1.09%(b) (c) (c) (c) (c) 1.11%(b)
Assets**
Portfolio Turnover*** 13% 87% 79% 88% 130% 314%
SEE NOTES TO FINANCIAL STATEMENTS.
26
================================================================================
FINANCIAL HIGHLIGHTS
================================================================================
PERIOD ENDED
SEPT. 30, APRIL 30,
2004 (d) 2004 (f)
---------------- ------------------
CLASS C
- -------
Net Asset Value, $ 9.65 $ 9.73
Beginning of Period
INVESTMENT ACTIVITIES:
Net Investment Income 0.13 0.01
Net Realized and 0.13 (0.08)
Unrealized Gains
(Losses) on
Investments
------ ------
Total from Investment 0.26 (0.07)
Activities
DISTRIBUTIONS:
Net Investment Income (0.14) (0.01)
Net Realized Gains - -
------ ------
Total Distributions (0.14) (0.01)
------ ------
Net Asset Value, End of $ 9.77 $ 9.65
Period
Total Return* 2.75%(a) (0.72%)(a)
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of $ 3 $ 3
Period (000's)
Ratio of Expenses to 1.68%(b) 1.69%(b)
Average Net Assets
Ratio of Net Investment 3.33%(b) 3.03%(b)
Income to Average
Net Assets
Ratio of Expenses to 2.09%(b) (c)
Average Net
Assets**
Portfolio Turnover*** 13% 87%
CLASS R
- -------
Net Asset Value, $ 9.65 $ 9.73
Beginning of Period
INVESTMENT ACTIVITIES:
Net Investment Income 0.16 0.01
Net Realized and 0.12 (0.08)
Unrealized Gains
(Losses) on
Investments
------ ------
Total from Investment 0.28 (0.07)
Activities
DISTRIBUTIONS:
Net Investment Income (0.16) (0.01)
Net Realized Gains - -
------ ------
Total Distributions (0.16) (0.01)
------ ------
Net Asset Value, End of $ 9.77 $ 9.65
Period
Total Return* 2.96%(a) (0.71%)(a)
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of $ 20 $ 3
Period (000's)
Ratio of Expenses to 1.16%(b) 1.13%(b)
Average Net Assets
Ratio of Net Investment 2.92%(b) 3.54%(b)
Income to Average
Net Assets
Ratio of Expenses to 1.73%(b) (c)
Average Net
Assets**
Portfolio Turnover*** 13% 87%
PERIOD ENDED
SEPT. 30, APRIL 30,
2004 (d) 2004 (f)
---------------- ------------------
CLASS S
- -------
Net Asset Value, $ 9.65 $ 9.73
Beginning of Period
INVESTMENT ACTIVITIES:
Net Investment Income 0.17 0.01
Net Realized and 0.13 (0.08)
Unrealized Gains
(Losses) on
Investments
------- -------
Total from Investment 0.30 (0.07)
Activities
DISTRIBUTIONS:
Net Investment Income (0.18) (0.01)
Net Realized Gains - -
------- -------
Total Distributions (0.18) (0.01)
------- -------
Net Asset Value, End of $ 9.77 $ 9.65
Period
Total Return* 3.07%(a) (0.58%)(a)
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of $89,278 $97,237
Period (000's)
Ratio of Expenses to 0.68%(b) 0.68%(b)
Average Net Assets
Ratio of Net Investment 4.34%(b) 4.37%(b)
Income to Average
Net Assets
Ratio of Expenses to 1.13%(b) (c)
Average Net
Assets**
Portfolio Turnover*** 13% 87%
* Excludes sales charge.
** During the period, certain fees were voluntarily reduced. If such
voluntary fee reductions had not occurred, the ratio would have been as
indicated.
*** Portfolio turnover is calculated on the basis of the fund as a whole
without distinguishing between the classes of shares issued.
(a) Not annualized.
(b) Annualized.
(c) There were no waivers or reimbursements during the period.
(d) For the period from May 1, 2004 to September 30, 2004.
(e) For the period from May 11, 1999 (commencement of operations) to April 30,
2000.
(f) For the period from April 19, 2004 (commencement of operations) to April
30, 2004.
SEE NOTES TO FINANCIAL STATEMENTS.
27
================================================================================
FINANCIAL HIGHLIGHTS
================================================================================
TAMARACK TAX-FREE INCOME FUND
- --------------------------------------------------------------------------------
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD INDICATED)
PERIOD ENDED YEAR ENDED JUNE 30,
SEPT. 30,
------------------------------------------------------------------
2004 (D) 2004 (F) 2003 2002 2001 2000
---------------- ------------ ----------- ------------- ------------- -------------
CLASS S
- -------------------------------------
Net Asset Value, Beginning of $ 9.05 $ 9.57 $ 9.14 $ 8.96 $ 8.62 $ 8.91
Period
INVESTMENT ACTIVITIES:
Net Investment Income 0.08 0.32 0.35 0.36 0.37 0.39
Net Realized and Unrealized 0.26 (0.40) 0.44 0.18 0.38 (0.21)
---------- ---------- ---------- ---------- ---------- ----------
Gains (Losses) on Investments
Total from Investment Activities 0.34 (0.08) 0.79 0.54 0.75 0.18
DISTRIBUTIONS:
Net Investment Income (0.08) (0.32) (0.35) (0.36) (0.37) (0.39)
Net Realized Gains - (0.12) (0.01) - (0.04) (0.08)
---------- ---------- ---------- ---------- ---------- ----------
Total Distributions (0.08) (0.44) (0.36) (0.36) (0.41) (0.47)
---------- ---------- ---------- ---------- ---------- ----------
Net Asset Value, End of Period $ 9.31 $ 9.05 $ 9.57 $ 9.14 $ 8.96 $ 8.62
Total Return* 3.78%(a) (0.87%) 8.82% 6.12% 8.89% 2.18%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000's) $ 27,329 $ 28,186 $ 39,045 $ 36,435 $ 34,856 $ 24,166
Ratio of Expenses to Average Net 0.99%(b) 0.99% 0.99% 0.99% 1.00% 1.01%
Assets
Ratio of Net Investment Income 3.48%(b) 3.47% 3.73% 3.96% 4.19% 4.53%
to Average Net Assets
Ratio of Expenses to Average Net 1.43%(b) 1.35% 1.04% (c) (c) (c)
Assets**
Portfolio Turnover*** 2% 17% 15% 12% 27% 48%
SEE NOTES TO FINANCIAL STATEMENTS.
28
================================================================================
FINANCIAL HIGHLIGHTS
================================================================================
PERIOD ENDED
SEPT. 30, JUNE 30,
2004 (d) 2004 (e)
---------------- ------------------
CLASS A
- -------
Net Asset Value, $ 9.05 $ 9.25
Beginning of Period
INVESTMENT ACTIVITIES:
Net Investment Income 0.07 0.06
Net Realized and 0.26 (0.20)
Unrealized Gains
(Losses) on
Investments
------- -------
Total from Investment 0.33 (0.14)
Activities
DISTRIBUTIONS:
Net Investment Income (0.07) (0.06)
Net Realized Gains - -
------- -------
Total Distributions (0.07) (0.06)
------- -------
Net Asset Value, End of $ 9.31 $ 9.05
Period
Total Return* 3.71%(a) (1.50%)(a)
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of $ 166 $ 33
Period (000's)
Ratio of Expenses to 1.23%(b) 1.24%(b)
Average Net Assets
Ratio of Net Investment 3.20%(b) 3.39%(b)
Income to Average
Net Assets
Ratio of Expenses to 1.82%(b) 3.00%(b)
Average Net
Assets**
Portfolio Turnover*** 2% 17%
CLASS C
- -------
Net Asset Value, $ 9.05 $ 9.25
Beginning of Period
INVESTMENT ACTIVITIES:
Net Investment Income 0.06 0.05
Net Realized and 0.26 (0.20)
Unrealized Gains
(Losses) on
Investments
------- -------
Total from Investment 0.32 (0.15)
Activities
DISTRIBUTIONS:
Net Investment Income (0.06) (0.05)
Net Realized Gains - -
------- -------
Total Distributions (0.06) (0.05)
------- -------
Net Asset Value, End of $ 9.31 $ 9.05
Period
Total Return* 3.53%(a) (1.65%)(a)
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of $ 3 $ 3
Period (000's)
Ratio of Expenses to 1.99%(b) 1.98%(b)
Average Net Assets
Ratio of Net Investment 2.54%(b) 2.59%(b)
Income to Average
Net Assets
Ratio of Expenses to 2.45%(b) 3.16%(b)
Average Net
Assets**
Portfolio Turnover*** 2% 17%
PERIOD ENDED
SEPT. 30, JUNE 30,
2004 (d) 2004 (e)
---------------- ------------------
CLASS R
- -------
Net Asset Value, $ 9.05 $ 9.25
Beginning of Period
INVESTMENT ACTIVITIES:
Net Investment Income 0.07 0.06
Net Realized and 0.26 (0.20)
Unrealized Gains
(Losses) on
Investments
------- -------
Total from Investment 0.33 (0.14)
Activities
DISTRIBUTIONS:
Net Investment Income (0.07) (0.06)
Net Realized Gains - -
------ ------
Total Distributions (0.07) (0.06)
------ ------
Net Asset Value, End of $ 9.31 $ 9.05
Period
Total Return* 3.66%(a) (1.55%)(a)
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of $ 3 $ 3
Period (000's)
Ratio of Expenses to 1.49%(b) 1.48%(b)
Average Net Assets
Ratio of Net Investment 3.03%(b) 3.09%(b)
Income to Average
Net Assets
Ratio of Expenses to 1.96%(b) 2.65%(b)
Average Net
Assets**
Portfolio Turnover*** 2% 17%
* Excludes sales charge.
** During the period, certain fees were voluntarily reduced. If such
voluntary fee reductions had not occurred, the ratio would have been as
indicated.
*** Portfolio turnover is calculated on the basis of the fund as a whole
without distinguishing between the classes of shares issued.
(a) Not annualized.
(b) Annualized.
(c) There were no waivers or reimbursements during the period.
(d) For the period from July 1, 2004 to September 30, 2004.
(e) For the period from April 19, 2004 (commencement of operations) to June 30,
2004.
(f) The existing class of shares was designated Class S shares as of April 19,
2004.
SEE NOTES TO FINANCIAL STATEMENTS.
29
================================================================================
FINANCIAL HIGHLIGHTS
================================================================================
TAMARACK NORTH CAROLINA TAX-FREE BOND FUND
- --------------------------------------------------------------------------------
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD INDICATED)
PERIOD ENDED YEAR ENDED APRIL 30,
SEPT. 30, ----------------------------------------------------------------------
2004 (c) 2004 2003 2002 2001 2000
---------- ---------- ---------- ---------- ---------- ----------
CLASS A
- -------
Net Asset Value, Beginning of $ 10.19 $ 10.70 $ 10.39 $ 10.30 $ 9.91 $ 10.45
Period
INVESTMENT ACTIVITIES:
Net Investment Income 0.13 0.33 0.36 0.38 0.40 0.38
Net Realized and Unrealized 0.08 (0.30) 0.35 0.19 0.39 (0.51)
Gains (Losses) on Investments ---------- ---------- ---------- ---------- ---------- ----------
Total from Investment Activities 0.21 0.03 0.71 0.57 0.79 (0.13)
DISTRIBUTIONS:
Net Investment Income (0.11) (0.33) (0.36) (0.38) (0.40) (0.39)
Net Realized Gains - (0.21) (0.04) (0.10) - (0.02)
---------- ---------- ---------- ---------- ---------- ----------
Total Distributions (0.11) (0.54) (0.40) (0.48) (0.40) (0.41)
---------- ---------- ---------- ---------- ---------- ----------
Net Asset Value, End of Year $ 10.29 $ 10.19 $ 10.70 $ 10.39 $ 10.30 $ 9.91
Total Return* 2.08%(a) 0.30% 6.96% 5.64% 8.04% (1.15%)
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000's) $ 6,709 $ 5,066 $ 4,301 $ 4,507 $ 4,225 $ 4,554
Ratio of Expenses to Average 1.14%(b) 1.20% 1.12% 1.10% 1.00% 0.98%
Net Assets
Ratio of Net Investment Income 2.96%(b) 3.16% 3.41% 3.61% 3.88% 3.85%
to Average Net Assets
Ratio of Expenses to Average 1.81%(b) 1.48% 1.39% 1.37% 1.28% 1.26%
Net Assets**
Portfolio Turnover*** 0% 9% 2% 7% 13% 14%
CLASS I
- -------
Net Asset Value, Beginning of $ 10.19 $ 10.70 $ 10.39 $ 10.30 $ 9.91 $ 10.45
Period
INVESTMENT ACTIVITIES:
Net Investment Income 0.13 0.36 0.39 0.40 0.42 0.41
Net Realized and Unrealized 0.09 (0.30) 0.35 0.19 0.39 (0.51)
Gains (Losses) on Investments ---------- ---------- ---------- ---------- ---------- ----------
Total from Investment Activities 0.22 0.06 0.74 0.59 0.81 (0.10)
DISTRIBUTIONS:
Net Investment Income (0.12) (0.36) (0.39) (0.40) (0.42) (0.42)
Net Realized Gains - (0.21) (0.04) (0.10) - (0.02)
---------- ---------- ---------- ---------- ---------- ----------
Total Distributions (0.12) (0.57) (0.43) (0.50) (0.42) (0.44)
---------- ---------- ---------- ---------- ---------- ----------
Net Asset Value, End of Year $ 10.29 $ 10.19 $ 10.70 $ 10.39 $ 10.30 $ 9.91
Total Return* 2.19%(a) 0.55% 7.23% 5.90% 8.31% (0.90%)
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000's) $ 8,124 $ 13,390 $ 21,251 $ 26,006 $ 29,223 $ 32,461
Ratio of Expenses to Average 0.89%(b) 0.95% 0.87% 0.85% 0.75% 0.73%
Net Assets
Ratio of Net Investment Income 3.22%(b) 3.43% 3.66% 3.86% 4.13% 4.09%
to Average Net Assets
Ratio of Expenses to Average 1.27%(b) 0.98% 0.89% 0.87% 0.77% 0.76%
Net Assets**
Portfolio Turnover*** 0% 9% 2% 7% 13% 14%
* Excludes sales charge.
** During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratio would have been as indicated.
*** Portfolio turnover is calculated on the basis of the fund as a whole
without distinguishing between the classes of shares issued.
(a) Not annualized.
(b) Annualized.
(c) For the period from May 1, 2004 to September 30, 2004.
SEE NOTES TO FINANCIAL STATEMENTS.
30
================================================================================
NOTES TO FINANCIAL STATEMENTS
================================================================================
SEPTEMBER 30, 2004
- --------------------------------------------------------------------------------
1. ORGANIZATION
Tamarack Funds Trust ("Tamarack") is registered under the Investment Company Act
of 1940 (as amended) as an open-end management investment company. Tamarack was
organized as a Delaware statutory trust on December 16, 2003. Effective April
16, 2004, and based on approval of shareholders, seventeen separate investment
portfolios were reorganized as investment portfolios of Tamarack with a new
fiscal year end of September 30th. This annual report includes the following
four investment portfolios ("Funds"):
- - Tamarack Government Income Fund ("Government Income Fund")
- - Tamarack Quality Fixed Income Fund ("Quality Fixed Income Fund")
- - Tamarack Tax-Free Income Fund ("Tax-Free Income Fund")
- - Tamarack North Carolina Tax-Free Bond Fund ("North Carolina Tax-Free Bond
Fund")
The Government Income, North Carolina Tax-Free Bond Fund and Quality Fixed
Income Funds offer five share classes: Class A, Class C, Class R, Class I and
Class S shares. Currrently, there are no assets in Class C, Class R and Class S
share classes of the North Carolina Tax-Free Bond Fund, therefore the classes
are not presented in the financial statements. The Tax-Free Income Fund offers
four share classes: Class A, Class C, Class R and Class S shares. The North
Carolina Tax-Free Bond Fund offers two share classes: Class A and Class I
shares. Class A shares are offered with a 3.75% maximum front-end sales charge
and a 1.00% contingent deferred sales charge ("CDSC") for redemption within 12
months of a $1 million or greater purchase. Class C shares are offered at net
asset value (i.e. no front-end sales charge), but are subject to a CDSC of 1.00%
for redemptions within 12 months of purchase. Class R shares are not subject to
either a front-end sales charge or CDSC. Class I and Class S shares are closed
to new investors.
Voyageur Asset Management Inc. ("Voyageur") acts as the investment advisor for
Tamarack. The officers of Tamarack ("Fund Management") are also employees of
Voyageur or its affiliates.
Under the Funds' organizational documents, the Funds' officers and trustees are
indemnified against certain liabilities arising out of the performance of their
duties related to the Funds. In addition, in the normal course of business, the
Funds enter into contracts with their vendors and others that provide for
indemnification by the Funds in certain situations. These situations may involve
future, unknown claims made against the Funds. However, any risk of loss to the
Funds which may arise from such claims is expected to be remote.
- --------------------------------------------------------------------------------
2. SIGNIFICANT ACCOUNTING POLICIES
Summarized below are the significant accounting policies of the Funds. These
policies conform to accounting principles generally accepted in the United
States of America ("GAAP"). Fund management follows these policies when
preparing financial statements. Management may also be required to make
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the reported amounts of
income and expenses for the period. Actual results could differ from those
estimates.
31
================================================================================
NOTES TO FINANCIAL STATEMENTS
================================================================================
SECURITY VALUATION:
Bonds and other fixed income securities are generally valued on the basis of
valuations furnished by pricing services approved by Tamarack's Board of
Trustees (the "Board"). The pricing services utilize both dealer-supplied
valuations and electronic data processing techniques that take into account
appropriate factors such as institutional-size trading in similar groups of
securities, yield, quality, coupon rate, maturity, type of issue and trading
characteristics other than market data and without exclusive reliance upon
quoted prices of exchanges or over-the-counter prices, since these valuations
are believed to reflect more accurately the fair value of such securities.
Short-term debt obligations with less than 60 days to maturity at time of
purchase are valued at amortized cost, which approximates market value, unless
Fund Management determines that amortized cost no longer approximates market
value due to credit or other impairments of the issuer. In such cases and also
where a security price is unavailable from a pricing service, Tamarack has
established procedures to determine a security's fair value. This report
presents information as of Tamarack's fiscal year end of September 30, 2004.
INVESTMENT TRANSACTIONS:
Security transactions are accounted for on the date the security is bought or
sold ("trade date"). Long-term investment transactions are recorded on a trade
date plus one basis, except for on the last day of the annual or semi-annual
financial reporting period, when they are recorded on trade date. Dividend
income is recorded on the ex-dividend date. Securities gains and losses are
calculated based on the costs of the specific security (also known as identified
cost basis). Interest income is recognized on the accrual basis and includes,
where applicable, the amortization or accretion of premium or discount.
Principal repayment of gains and losses on mortgage and asset-backed securities
are included in the financial statements as interest income.
EXPENSE, INVESTMENT INCOME AND GAIN/LOSS ALLOCATION:
Each Fund pays the expenses that are directly related to its operations, such as
trading costs or portfolio management fees. Expenses incurred by Tamarack on
behalf of multiple Funds, such as trustee or legal fees, are allocated among
each of the Funds either proportionately based upon each fund's net assets or
using another reasonable basis such as equally across all Funds, depending on
the nature of the expense. Individual share classes within a Fund are charged
expenses specific to that class, such as sales and distribution fees. Expenses
other than class specific expenses are allocated daily to each class based upon
the proportion of relative net assets. Investment income and realized and
unrealized gains or losses are allocated to each class of shares based on
relative net assets.
FINANCIAL INSTRUMENTS:
The Funds may engage in when-issued (to be announced) transactions. A Fund would
record when-issued securities on the actual trade date and maintain sufficient
liquidity so that cash will be available to make payment for the securities
purchased. Securities purchased on a when-issued or delayed delivery basis are
valued daily and begin earning interest on the settlement date.
DISTRIBUTIONS TO SHAREHOLDERS:
The Funds pay out any income that they receive, less expenses, in the form of
dividends to their shareholders. Income dividends are declared daily and paid
monthly. Capital
32
================================================================================
NOTES TO FINANCIAL STATEMENTS
================================================================================
gains are declared and paid at least annually. Distributions to shareholders are
recorded on the ex-dividend date. The amount of dividends and distributions are
calculated based on federal income tax regulations, which may differ from GAAP.
These "book/tax" differences may be either temporary or permanent in nature. To
the extent these differences are permanent (e.g. expiring capital loss
carryforward and foreign currency transactions), they are reclassified within
the Funds' capital accounts based on their federal tax basis treatment. Such
differences are not reflected in the calculation of the financial highlights.
- --------------------------------------------------------------------------------
3. AGREEMENTS AND OTHER TRANSACTIONS WITH AFFILIATES
Tamarack, on behalf of the Funds, has entered into an investment advisory
agreement with Voyageur, under which Voyageur manages each Fund's assets and
furnishes related office facilities, equipment, research and personnel. The
agreement requires each Fund to pay Voyageur a monthly fee based upon average
daily net assets. Under the terms of the advisory contracts, Voyageur is
entitled to receive fees based on a percentage of the average daily net assets
of each of the Funds as follows:
Annual Rate
-----------
Government Income Fund 0.30%
Quality Fixed Income Fund 0.60%
Tax-Free Income Fund 0.85%
North Carolina Tax-Free Bond Fund 0.35%
Voyageur has contractually agreed to waive fees and/or to make payments in order
to keep total operating expenses of the Class S shares of Quality Fixed Income
Fund to 0.68% and Tax-Free Income Fund to 0.99%. This expense limitation
agreement is in place until May 1, 2005. Voyageur may also voluntarily waive
and/or reimburse operating expenses of the Fund from time to time. Any such
voluntary program may be changed or eliminated at any time without notice.
Voyageur serves as administrator to the Funds and BISYS Fund Services Ohio, Inc.
("BISYS") serves as sub-administrator. Services provided under the
administrative services contract include providing day-to-day administration of
matters related to the Funds, maintenance of the Funds' records and the
preparation of reports. Effective April 16, 2004 and under the terms of the
administrative services contract, Voyageur receives from each Fund a fee,
payable monthly, at the annual rate of 0.10% of the Funds' average daily net
assets. For its services as sub-administrator, BISYS receives a fee payable by
Voyageur out of Voyageur's own resources.
33
================================================================================
NOTES TO FINANCIAL STATEMENTS
================================================================================
- --------------------------------------------------------------------------------
4. FUND DISTRIBUTION
Each of the Funds has adopted a Master Distribution 12b-1 Plan (the "Plan") in
which Tamarack Distributors Inc. (the "Distributor") acts as the Funds'
distributor. The Distributor is an affiliate of Voyageur. The Plan permits each
Fund to make payments for, or to reimburse the Distributor monthly for,
distribution-related costs and expenses of marketing shares of each share class
covered under the Plan. Plan fees are based on average annual daily net assets
of the applicable class. The Distributor, subject to applicable legal
requirements, may waive a Plan fee voluntarily, in whole or in part. The
following chart shows the maximum Plan fee rate for each class.
Class A Class C Class R
------------ --------- ----------
12b-1 Plan Fee 0.50%* 1.00% 0.50%
*The Distributor is currently waiving 0.25% of the Plan fee for Class A. These
voluntary waivers will continue until at least March 31, 2005.
For the period from May 1, 2004 to September 30, 2004 for Government Income,
Quality Fixed Income and North Carolina Tax-Free Bond Funds, and for the period
from July 1, 2004 to September 30, 2004 for the Tax-Free Income Fund, the
Distributor received commissions of $17,809 from front-end sales charges of
Class A shares, none of which was allowed back to affiliated broker-dealers of
the Funds.
- --------------------------------------------------------------------------------
5. SECURITIES TRANSACTIONS
The cost of securities purchased and proceeds from securities sold (excluding
short-term securities) for the period ended September 30, 2004 were as follows:
Purchases Sales
(Excl. (Excl. Purchases Sales of
U.S. Govt.) U.S. Govt.) of U.S. Govt. U.S. Govt.
Government
Income Fund $ - $ - $2,805,342 $ 7,387,464
Quality Fixed
Income Fund 9,262,473 19,123,818 5,510,105 10,340,213
Tax-Free
Income Fund 494,940 1,961,346 - -
North Carolina
Tax-Free Bond Fund - 4,500,205 - -
- --------------------------------------------------------------------------------
6. CAPITAL SHARE TRANSACTIONS
Tamarack is authorized to issue an unlimited number of shares of beneficial
interest ("shares outstanding") without par value. Transactions in shares of the
Funds are summarized below:
34
================================================================================
NOTES TO FINANCIAL STATEMENTS
================================================================================
TAMARACK GOVERNMENT INCOME FUND
FOR THE FOR THE FOR THE
PERIOD ENDED YEAR ENDED YEAR ENDED
SEPT. 30, 2004 (a) APR. 30, 2004 APR. 30, 2003
-------------------- ----------------- -----------------
CAPITAL TRANSACTIONS:
CLASS A
Proceeds from shares issued $ 1,070,028 $ 2,942,652 $ 3,854,740
Proceeds from shares exchanged from Class B - 414,882 -
Dividends reinvested 54,873 256,506 198,234
Cost of shares redeemed (954,641) (3,522,320) (3,207,198)
------------ ------------ ------------
Change in Class A $ 170,260 $ 91,720 $ 845,776
------------ ------------ ------------
CLASS B
Proceeds from shares issued $ - $ - $ 291,402
Dividends reinvested - 15,092 11,104
Cost of shares redeemed - (180,998) (160,401)
Cost of shares exchanged to Class A - (414,882) -
------------ ------------ ------------
Change in Class B $ - $ (580,788) $ 142,105
------------ ------------ ------------
CLASS I
Proceeds from shares issued $ 343,845 $ 10,414,118 $ 14,373,086
Dividends reinvested 82,200 586,434 431,112
Cost of shares redeemed (5,388,337) (16,225,342) (16,068,612)
------------ ------------ ------------
Change in Class I $ (4,962,292) $ (5,224,790) $ (1,264,414)
------------ ------------ ------------
CLASS C
Proceeds from shares issued $ - $ 3,275 (c) $ -
Dividends reinvested 17 - -
Cost of shares redeemed - - -
------------ ------------ ------------
Change in Class C $ 17 $ 3,275 $ -
------------ ------------ ------------
CLASS R
Proceeds from shares issued $ 23,210 $ 3,275 (c) $ -
Dividends reinvested 23 - -
Cost of shares redeemed - - -
------------ ------------ ------------
Change in Class R $ 23,233 $ 3,275 $ -
------------ ------------ ------------
CLASS S
Proceeds from shares issued $ 2,100 $ 3,275(c) $ -
Proceeds from shares issued in connection with merger - - -
Dividends reinvested 31 - -
Cost of shares redeemed (2,128) - -
------------ ------------ ------------
Change in Class S $ 3 $ 3,275 $ -
------------ ------------ ------------
Change in net assets from capital transactions $ (4,768,779) $ (5,704,033) $ (276,533)
============ ============ ============
SHARE TRANSACTIONS:
CLASS A
Issued 104,186 277,034 362,476
Issued in connection with exchange from Class B - 38,956 -
Reinvested 5,315 24,275 18,678
Redeemed (92,480) (330,203) (302,503)
------------ ------------ ------------
Change in Class A 17,021 10,062 78,651
------------ ------------ ------------
CLASS B
Issued - - 27,471
Reinvested - 1,432 1,046
Redeemed - (17,061) (15,032)
Cost of shares exchanged to Class A - (38,956) -
------------ ------------ ------------
Change in Class B - (54,585) 13,485
------------ ------------ ------------
CLASS I
Issued 33,481 987,290 1,359,284
Reinvested 7,962 55,560 40,665
Redeemed (521,385) (1,525,217) (1,512,347)
------------ ------------ ------------
Change in Class I (479,942) (482,367) (112,398)
------------ ------------ ------------
CLASS C
Issued - 314 (c) -
Reinvested 2 - -
Redeemed - - -
------------ ------------ ------------
Change in Class C 2 314 -
------------ ------------ ------------
CLASS R
Issued 2,213 314(c) -
Reinvested 2 - -
Redeemed - - -
------------ ------------ ------------
Change in Class R 2,215 314 -
------------ ------------ ------------
CLASS S
Issued 204 314(c) -
Issued in connection with merger - - -
Reinvested 3 - -
Redeemed (204) - -
------------ ------------ ------------
Change in Class S 3 314 -
------------ ------------ ------------
Change in shares from capital transactions (460,701) (525,948) (20,262)
============ ============ ============
35
================================================================================
NOTES TO FINANCIAL STATEMENTS
================================================================================
TAMARACK QUALITY FIXED INCOME FUND
FOR THE FOR THE FOR THE
PERIOD ENDED YEAR ENDED YEAR ENDED
SEPT. 30, 2004 (a) APR. 30, 2004 APR. 30, 2003
-------------------- ---------------- ----------------
CAPITAL TRANSACTIONS:
CLASS A
Proceeds from shares issued $ 308,052 $ 1,355,528 $ 263,717
Proceeds from shares exchanged from Class B 122,283 -
Dividends reinvested 16,037 48,264 21,580
Cost of shares redeemed (210,658) (840,755) (297,858)
------------ ------------ ------------
Change in Class A $ 113,431 $ 685,320 $ (12,561)
------------ ------------ ------------
CLASS B
Proceeds from shares issued $ - $ 10,548 $ 3,599
Dividends reinvested - 8,118 4,513
Cost of shares redeemed - (6,903) (6,601)
Cost of shares exchanged to Class A - (122,283) -
------------ ------------ ------------
Change in Class B $ - $ (110,520) $ 1,511
------------ ------------ ------------
CLASS I
Proceeds from shares issued $ 897,600 $ 10,946,331 $ 14,561,966
Dividends reinvested 165,135 1,412,615 776,893
Cost of shares redeemed (13,312,682) (26,875,366) (34,921,983)
------------ ------------ ------------
Change in Class I $(12,249,947) $(14,516,420) $(19,583,124)
------------ ------------ ------------
CLASS C
Proceeds from shares issued $ - $ 3,275(c) $ -
Dividends reinvested 42 - -
Cost of shares redeemed - - -
------------ ------------ ------------
Change in Class C $ 42 $ 3,275 $ -
------------ ------------ ------------
CLASS R
Proceeds from shares issued $ 17,152 $ 3,275(c) $ -
Dividends reinvested 47 - -
Cost of shares redeemed - - -
------------ ------------ ------------
Change in Class R $ 17,199 $ 3,275 $ -
------------ ------------ ------------
CLASS S
Proceeds from shares issued $ 1,780,561 $ 18,274(c) $ -
Proceeds from shares issued in connection with merger - 99,512,062(c) -
Dividends reinvested 1,336,940 - -
Cost of shares redeemed (12,151,351) (1,292,361)(c) -
------------ ------------ ------------
Change in Class S ($ 9,033,850) $ 98,237,975 $ -
------------ ------------ ------------
Change in net assets from capital transactions $(21,153,125) $ 84,302,905 $(19,594,174)
============ ============ ============
SHARE TRANSACTIONS:
CLASS A
Issued 31,929 134,882 26,116
Issued in connection with exchange from Class B - 12,253 -
Reinvested 1,662 4,842 2,146
Redeemed (21,879) (83,824) (29,621)
------------ ------------ ------------
Change in Class A 11,712 68,153 (1,359)
------------ ------------ ------------
CLASS B
Issued - 1,033 354
Reinvested - 814 449
Redeemed - (694) (644)
Cost of shares exchanged to Class A - (12,253) -
------------ ------------ ------------
Change in Class B - (11,100) 159
------------ ------------ ------------
CLASS I
Issued 93,234 1,091,060 1,448,749
Reinvested 17,131 142,122 77,340
Redeemed (1,379,198) (2,660,354) (3,482,271)
------------ ------------ ------------
Change in Class I (1,268,833) (1,427,172) (1,956,182)
------------ ------------ ------------
CLASS C
Issued - 337(c) -
Reinvested 4 - -
Redeemed - - -
------------ ------------ ------------
Change in Class C 4 337 -
------------ ------------ ------------
CLASS R
Issued 1,748 337(c) -
Reinvested 5 - -
Redeemed - - -
------------ ------------ ------------
Change in Class R 1,753 337 -
------------ ------------ ------------
CLASS S
Issued 184,407 3,209(c) -
Issued in connection with merger - 10,207,207(c) -
Reinvested 138,690 - -
Redeemed (1,264,917) (132,190)(c) -
------------ ------------ ------------
Change in Class S (941,820) 10,078,226 -
------------ ------------ ------------
Change in shares from capital transactions (2,197,184) 8,708,781 (1,957,382)
============ ============ ============
36
================================================================================
NOTES TO FINANCIAL STATEMENTS
================================================================================
TAMARACK TAX-FREE INCOME FUND
FOR THE FOR THE FOR THE
PERIOD ENDED YEAR ENDED YEAR ENDED
SEPT. 30, 2004 (b) JUNE 30, 2004 JUNE 30, 2003
-------------------- ------------------- --------------
CAPITAL TRANSACTIONS:
CLASS A
Proceeds from shares issued $ 128,876 $ 32,998(d) $ -
Proceeds from shares exchanged from Class B - - -
Dividends reinvested 248 12(d) -
Cost of shares redeemed - - -
------------ ------------ ------------
Change in Class A $ 129,124 $ 33,010 $ -
------------ ------------ ------------
CLASS B
Proceeds from shares issued $ - $ - $ -
Dividends reinvested - - -
Cost of shares redeemed - - -
Cost of shares exchanged to Class A - - -
------------ ------------ ------------
Change in Class B $ - $ - $ -
------------ ------------ ------------
CLASS I
Proceeds from shares issued $ - $ - $ -
Dividends reinvested - - -
Cost of shares redeemed - - -
------------ ------------ ------------
Change in Class I $ - $ - $ -
------------ ------------ ------------
CLASS C
Proceeds from shares issued $ - $ 3,275(d) $ -
Dividends reinvested 21 9(d) -
Cost of shares redeemed - - -
------------ ------------ ------------
Change in Class C $ 21 $ 3,284 $ -
------------ ------------ ------------
CLASS R
Proceeds from shares issued $ - $ 3,275(d) $ -
Dividends reinvested 25 11(d) -
Cost of shares redeemed - - -
------------ ------------ ------------
Change in Class R $ 25 $ 3,286 $ -
------------ ------------ ------------
CLASS S
Proceeds from shares issued $ 13,905 $ 4,112,750 $ 7,305,576
Proceeds from shares issued in connection with merger - - -
Dividends reinvested 160,731 998,622 899,810
Cost of shares redeemed (1,841,869) (14,104,416) (7,356,230)
------------ ------------ ------------
Change in Class S $ (1,667,233) $ (8,993,044) $ 849,156
------------ ------------ ------------
Change in net assets from capital transactions $ (1,538,063) $ (8,953,464) $ 849,156
============ ============ ============
SHARE TRANSACTIONS:
CLASS A
Issued 14,116 3,679(d) -
Issued in connection with exchange from Class B - - -
Reinvested 27 1(d) -
Redeemed - - -
------------ ------------ ------------
Change in Class A 14,143 3,680 -
------------ ------------ ------------
CLASS B
Issued - - -
Reinvested - - -
Redeemed - - -
Cost of shares exchanged to Class A - - -
------------ ------------ ------------
Change in Class B - - -
------------ ------------ ------------
CLASS I
Issued - - -
Reinvested - - -
Redeemed - - -
------------ ------------ ------------
Change in Class I - - -
------------ ------------ ------------
CLASS C
Issued - 354(d) -
Reinvested 2 1(d) -
Redeemed - - -
------------ ------------ ------------
Change in Class C 2 355 -
------------ ------------ ------------
CLASS R
Issued - 354(d) -
Reinvested 3 1(d) -
Redeemed - - -
------------ ------------ ------------
Change in Class R 3 355 -
------------ ------------ ------------
CLASS S
Issued 1,505 442,325 779,423
Issued in connection with merger - - -
Reinvested 17,527 106,503 96,018
Redeemed (198,931) (1,512,177) (781,986)
------------ ------------ ------------
Change in Class S (179,899) (963,349) 93,455
------------ ------------ ------------
Change in shares from capital transactions (165,751) (958,959) 93,455
============ ============ ============
37
================================================================================
NOTES TO FINANCIAL STATEMENTS
================================================================================
TAMARACK NORTH CAROLINA TAX-FREE BOND FUND
FOR THE FOR THE FOR THE
PERIOD ENDED YEAR ENDED YEAR ENDED
SEPT. 30, 2004 (a) APR. 30, 2004 APR. 30, 2003
-------------------- --------------- ----------------
CAPITAL TRANSACTIONS:
CLASS A
Proceeds from shares issued $ 1,650,807 $ 1,098,258 $ 54,693
Proceeds from shares exchanged from Class B - 279,994 -
Dividends reinvested 49,151 219,859 157,897
Cost of shares redeemed (131,732) (593,557) (551,453)
----------- ----------- -----------
Change in Class A $ 1,568,226 $ 1,004,554 $ (338,863)
----------- ----------- -----------
CLASS B
Proceeds from shares issued $ - $ - $ 31,404
Dividends reinvested - 11,412 11,314
Cost of shares redeemed - (168,615) (36,614)
Cost of shares exchanged to Class A - (279,994) -
----------- ----------- -----------
Change in Class B $ - $ (437,197) $ 6,104
----------- ----------- -----------
CLASS I
Proceeds from shares issued $ 23,338 $ 2,479,055 $ 2,919,426
Dividends reinvested 13,743 262,148 109,961
Cost of shares redeemed (5,389,477) (9,835,117) (8,457,190)
----------- ----------- -----------
Change in Class I $(5,352,396) $(7,093,914) $(5,437,803)
----------- ----------- -----------
CLASS C
Proceeds from shares issued $ - $ - $ -
Dividends reinvested - - -
Cost of shares redeemed - - -
----------- ----------- -----------
Change in Class C $ - $ - $ -
CLASS R
Proceeds from shares issued $ - $ - $ -
Dividends reinvested - - -
Cost of shares redeemed - - -
----------- ----------- -----------
Change in Class R $ - $ - $ -
CLASS S
Proceeds from shares issued $ - $ - $ -
Proceeds from shares issued in connection with merger - - -
Dividends reinvested - - -
Cost of shares redeemed - - -
----------- ----------- -----------
Change in Class S $ - $ - $ -
----------- ----------- -----------
Change in net assets from capital transactions $(3,784,170) $(6,526,557) $(5,770,562)
=========== =========== ===========
SHARE TRANSACTIONS:
Class A
Issued 162,917 104,369 5,152
Issued in connection with exchange from Class B - 26,768 -
Reinvested 4,820 20,912 14,895
Redeemed (12,990) (56,864) (51,739)
----------- ----------- -----------
Change in Class A 154,747 95,185 (31,692)
----------- ----------- -----------
CLASS B
Issued - - 2,908
Reinvested - 1,059 1,067
Redeemed - (15,665) (3,482)
Cost of shares exchanged to Class A - (26,742) -
----------- ----------- -----------
Change in Class B - (41,348) 493
----------- ----------- -----------
CLASS I
Issued 2,292 235,393 275,348
Reinvested 1,348 25,097 10,331
Redeemed (528,738) (932,522) (801,479)
----------- ----------- -----------
Change in Class I (525,098) (672,032) (515,800)
----------- ----------- -----------
CLASS C
Issued - - -
Reinvested - - -
Redeemed - - -
----------- ----------- -----------
Change in Class C - - -
----------- ----------- -----------
CLASS R
Issued - - -
Reinvested - - -
Redeemed - - -
----------- ----------- -----------
Change in Class R - - -
----------- ----------- -----------
CLASS S
Issued - - -
Issued in connection with merger - - -
Reinvested - - -
Redeemed - - -
----------- ----------- -----------
Change in Class S - - -
----------- ----------- -----------
Change in shares from capital transactions (370,351) (618,195) (546,999)
=========== =========== ===========
(a) For the period from May 1, 2004 to September 30, 2004.
(b) For the period from July 1, 2004 to September 30, 2004.
(c) For the period from April 19, 2004 (commencement of operations) to April
30, 2004.
(d) For the period from April 19, 2004 (commencement of operations) to June 30,
2004.
38
================================================================================
NOTES TO FINANCIAL STATEMENTS
================================================================================
- --------------------------------------------------------------------------------
7. FEDERAL INCOME TAXES
It is the policy of each Fund to qualify as a regulated investment company by
complying with the provisions available to certain investment companies, as
defined under
Subchapter M of the Internal Revenue Code, and to distribute substantially all
of its net investment income and net realized capital gains. Therefore, no
federal tax liability is recorded in the financial statements of each Fund.
Effective for the taxable year ended September 30, 2004, each of the funds
changed its annual tax period to September 30th.
The tax cost of securities differ from financial reporting cost by the amount of
losses recognized for financial reporting purposes in excess of those allowed to
be recognized for federal income tax purposes. As of September 30, 2004, the tax
cost of securities and the breakdown of unrealized appreciation (depreciation)
for each Fund were as follows:
Net Unrealized
Tax Cost Unrealized Unrealized Appreciation
of Securities Appreciation Depreciation (Depreciation)
------------- ------------ ------------ --------------
Government Income Fund $ 19,755,969 $ 105,876 $(222,333) $ (116,457)
Quality Fixed Income Fund 106,684,401 3,349,848 (437,239) 2,912,609
Tax-Free Income Fund 25,256,913 2,097,310 (31,777) 2,065,533
North Carolina Tax-Free
Bond Fund 13,905,776 770,314 (10,184) 760,130
The tax character of distributions during the period ended September 30, 2004
was as follows:
Distribution Paid From
----------------------------
Net Total
Investment Net Long Term Total Taxable Tax Exempt Distributions
Income Capital Gains Distributions Distributions Paid
------------ --------------- --------------- --------------- --------------
Government Income Fund $ 232,520 $ - $ 232,520 $ - $ 232,520
Quality Fixed Income Fund 2,101,543 - 2,101,543 - 2,101,543
Tax-Free Income Fund 11,710 - 11,710 241,503 253,213
North Carolina Tax-Free Bond
Fund 768 - 768 216,338 217,106
The Tax-Free Income and North Carolina Tax-Free Bond Funds hereby designate 100%
of the amounts listed above as "Tax Exempt Distributions" as exempt-interest
dividends for federal income tax purposes.
The tax character of distributions during the fiscal year ended April 30, 2004
was as follows:
Distribution Paid From
----------------------------
Net Total
Investment Net Long Term Total Taxable Tax Exempt Distributions
Income Capital Gains Distributions Distributions Paid
------------ --------------- --------------- --------------- --------------
Government Income Fund $ 645,785 $488,681 $1,134,466 $ - $1,134,466
Quality Fixed Income Fund 2,037,101 941,576 2,978,677 - 2,978,677
North Carolina Tax-Free Bond
Fund 2,307 448,421 450,728 792,233 1,242,961
The tax character of distributions during the fiscal year ended June 30, 2004
was as follows:
Distribution Paid From
------------------------------
Net Total
Investment Net Long Term Total Taxable Tax Exempt Distributions
Income Capital Gains Distributions Distributions Paid
------------ --------------- --------------- --------------- --------------
Tax-Free Income Fund $194,536 $300,335 $494,871 $1,152,202 $1,647,073
39
================================================================================
NOTES TO FINANCIAL STATEMENTS
================================================================================
As of September 30, 2004 the components of accumulated earnings/(deficit) on a
tax basis was as follows:
Accum. Total
Undist. Undist. Undist. Capital and Unrealized Accum.
Ordinary Tax Exempt Long-Term Accum. Dist. Other Appreciation/ Earnings/
Income Income Capital Gains Earnings Payable Losses Depreciation (Deficits)
-------- ---------- ------------- --------- --------- ------------ ------------- ------------
Government
Income Fund $ 52,223 $ - $146,541 $198,764 $(15,271) $ (84,332) $ (116,457) $ (17,296)
Quality Fixed
Income Fund 292,474 - - 292,474 (415,251) (4,263,614) 2,912,609 (1,473,782)
Tax-Free
Income Fund - 78,174 681,258 759,432 (78,150) - 2,065,533 2,746,815
North Carolina
Tax-Free
Bond Fund - 30,488 566,205 596,693 (25,961) - 760,130 1,330,862
As of September 30, 2004, the following Funds had net capital loss carryforwards
to offset future net capital gains, if any:
Capital Loss Carryforward Expires
--------------------------- --------
Government Income Fund $ 84,332 2012
Quality Fixed Income Fund 835,813 2012
As of September 30, 2004, the following Fund had net capital loss carryforwards,
subject to certain limitations on availability, to offset future net capital
gains, if any, as a successor of a merger. To the extent that these carryovers
are used to offset future capital gains, it is probable that the gains will not
be distributed to shareholders:
Capital Loss Carryforward Expires
--------------------------- --------
Quality Fixed Income Fund $ 115,326 2008
482,219 2009
1,358,311 2010
1,229,732 2011
As of September 30, 2004, the following Funds had deferred post-October capital
losses to offset future net capital gains or net investment income, if any:
Deferred Post-October
Capital Losses
----------------------
Quality Fixed Income Fund $242,213
- --------------------------------------------------------------------------------
8. MARKET TIMING
Tamarack strongly discourages attempts at market timing by Fund shareholders.
Therefore, each Fund charges a redemption fee of 2% of the value of the shares
redeemed or exchanged within 30 days of purchase. When assessed, the redemption
fee is retained by the Fund, not by Voyageur. This redemption fee is not charged
in cases where the redemption results from an automatic reinvestment or asset
re-allocation not specifically directed by the shareholder. Tamarack also
reserves the right to reject any Fund purchase order made by persons deemed to
be market timers. The Funds' prospectus contains a more detailed description of
Tamarack's policies on market timing and/or excessive trading. During the period
ended September 30, 2004 the following funds collected redemption fees as
follows:
Amounts
--------
Government Income Fund $80
Quality Fixed Income Fund 66
40
================================================================================
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
TAMARACK GOVERNMENT INCOME FUND
- --------------------------------------------------------------------------------
SEPTEMBER 30, 2004
SHARES OR
PRINCIPAL
AMOUNT VALUE
- -------------- -----------
U.S. GOVERNMENT AGENCY OBLIGATIONS - 98.9%
FANNIE MAE - 48.0%
200,000 2.63%, 11/15/06 $ 199,077
1,000,000 5.00%, 1/15/07 1,045,763
1,000,000 7.13%, 3/15/07 1,096,899
500,000 4.25%, 7/15/07 514,682
500,000 6.63%, 10/15/07 548,877
750,000 5.75%, 2/15/08 807,590
800,000 6.00%, 5/15/08 870,101
500,000 3.38%, 12/15/08 496,159
700,000 5.38%, 11/15/11 747,100
400,000 6.13%, 3/15/12 445,641
1,163,918 4.50%, 10/1/13 1,175,836
580,000 4.13%, 4/15/14 558,706
818,280 4.50%, 5/1/33 825,724
212,268 4.63%, 7/1/33 209,793
-----------
9,541,948
-----------
FEDERAL HOME LOAN BANK - 21.7%
1,000,000 5.38%, 5/15/06 1,042,465
1,550,000 2.75%, 3/14/08 1,523,089
1,000,000 5.75%, 5/15/12 1,090,396
250,000 4.50%, 11/15/12 251,424
195,840 4.83%, 2/1/13 200,920
200,000 3.88%, 6/14/13 191,565
-----------
4,299,859
-----------
FREDDIE MAC - 15.5%
1,000,000 4.88%, 3/15/07 1,044,636
500,000 5.00%, 7/15/14 514,613
1,127,078 5.00%, 12/1/17 1,148,044
378,471 4.50%, 5/1/18 378,119
-----------
3,085,412
-----------
GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION - 12.7%
1,095,000 5.29%, 11/16/15 1,138,445
199,142 3.65%, 9/16/17 199,237
200,000 3.59%, 11/16/17 200,000
968,389 4.36%, 2/16/30 974,611
-----------
2,512,293
-----------
SMALL BUSINESS ADMINISTRATION - 1.0%
200,000 4.68%, 9/10/14 200,000
TOTAL U.S. GOVERNMENT AGENCY 19,639,512
OBLIGATIONS -----------
(Cost $19,755,969)
TOTAL INVESTMENTS 19,639,512
(Cost $19,755,969) (a) - 98.9%
SHARES OR
PRINCIPAL
AMOUNT VALUE
- -------------- -----------
OTHER ASSETS IN EXCESS OF 213,669
LIABILITIES - 1.1% -----------
NET ASSETS - 100.0% $19,853,181
===========
(a) See notes to financial statements for tax basis unrealized appreciation
(depreciation) of securities.
SEE NOTES TO FINANCIAL STATEMENTS.
41
================================================================================
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
TAMARACK QUALITY FIXED INCOME FUND
- --------------------------------------------------------------------------------
SEPTEMBER 30, 2004
SHARES OR
PRINCIPAL
AMOUNT VALUE
- ------------- ----------
ASSET BACKED SECURITIES - 3.1%
AUTOMOTIVE - 0.7%
440,000 Capital Auto $ 440,385
Receivables Asset Trust,
Series 2003-1, Class
A2A, 2.27%, 1/17/06
145,507 Ford Credit Auto Owner 146,055
Trust, Series 2002-B,
Class A3A,
4.14%, 12/15/05
125,000 Ford Credit Auto Owner 124,993
Trust, Series 2003-A,
Class A3A,
2.20%, 7/17/06
62,444 MMCA Automobile 62,527
Trust, Series 2002-3, ----------
Class A3,
2.97%, 3/15/07
773,960
----------
BANKING & FINANCIAL SERVICES - 1.9%
725,000 Chase Credit Card 726,697
Master Trust, Series
2003-2, Class A,
1.71%, 7/15/10, (b)
650,000 MBNA Master Credit 708,500
Card Trust, Series
1999-B, Class A,
5.90%, 8/15/11
100,861 New Century Home 100,677
Equity Loan Trust, Series
1997-NC5, Class A6,
6.70%, 10/25/28
550,000 Vanderbilt Mortgage 553,783
Finance, Series 2002-C, ----------
Class A2,
4.23%, 2/7/15
2,089,657
----------
UTILITIES - 0.5%
500,000 Peco Energy Transition 561,313
Trust, Series 2001-A, ----------
Class A1,
6.52%, 12/31/10
TOTAL ASSET BACKED SECURITIES 3,424,930
(Cost $3,315,689) ----------
COLLATERALIZED MORTGAGE OBLIGATIONS - 8.3%
BANKING & FINANCIAL SERVICES - 8.3%
347,276 Bank of America 356,715
Mortgage Securities,
Series 2004-4, Class
3A1, 5.00%, 5/25/19
SHARES OR
PRINCIPAL
AMOUNT VALUE
- ------------- ----------
2,347,163 Countrywide Alternative $2,413,158
Loan Trust, Series
2004-12CB, Class 1A1,
5.00%, 7/25/19
500,000 Countrywide Alternative 506,641
Loan Trust, Series
2004-24CB, Class 2A1,
5.00%, 11/25/19 (d)
61,964 Residential Accredit 62,291
Loans, Inc., Series
2002-QS9, Class A3,
6.50%, 7/25/32
1,175,162 Residential Funding 1,200,296
Mortgage Securities I,
Series 2004-S5, Class
1A1, 5.25%, 5/25/34
593,673 Structured Adjustable 603,533
Rate Mortgage Loan
Trust, Series 2004-2,
Class 2A, 5.08%,
3/25/34, (b)
229,125 Structured Asset 233,581
Securities Corp., Series
2002-11A, Class 2A1,
5.60%, 6/25/32
475,000 Structured Asset 496,367
Securities Corp., Series
2004-11XS, Class
1A4A, 5.84%, 6/25/34
1,205,000 Structured Asset 1,199,288
Securities Corp., Series
2004-17XS, Class A2,
4.45%, 9/25/34
714,515 Structured Asset 715,542
Securties Corp., Series
2003-30, Class 1A1,
5.50%, 10/25/33
270,859 Vendee Mortgage Trust, 287,937
Series 1992-1, Class 2Z,
7.75%, 5/15/22
1,051,334 Washington Mutual, 1,034,908
Inc., Series 2003-S11, ----------
Class 1A,
5.00%, 11/25/33
TOTAL COLLATERALIZED MORTGAGE 9,110,257
OBLIGATIONS (Cost $8,991,195) ----------
COMMERCIAL MORTGAGE BACKED
SECURITIES - 6.3%
BANKING & FINANCIAL SERVICES - 6.3%
564,723 ABN Amro Mortgage 561,870
Corp., Series 2003-12,
Class 1A,
5.00%, 12/25/33
42
================================================================================
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
TAMARACK QUALITY FIXED INCOME FUND (CONT.)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
- ------------- ----------
560,375 Chase Commercial $ 585,478
Mortgage Securities
Corp., Series 1996-1,
Class A2, 7.60%,
3/18/06
847,347 Chase Mortgage 813,791
Finance Corp., Series
2003-S11, Class 1A1,
5.00%, 10/25/33
684,769 GE Capital Commercial 704,000
Mortgage Corp., Series
2002-1A, Class A1,
5.03%, 12/10/35
226,695 GMAC Commercial 229,013
Mortgage Securities,
Inc., Series 1998-C1,
Class A1,
6.41%, 5/15/30
111,150 GMAC Mortgage Corp. 110,996
Loan Trust, Series
2001-J5, Class A7,
6.75%, 11/25/31
43,770 GSR Mortgage Loan 43,742
Trust, Series 2002-8F,
Class 3AA1,
6.50%, 9/25/32
1,750,000 JP Morgan Commercial 1,919,107
Mortgage Finance
Corp., Series 1999-C7,
Class A2,
6.51%, 10/15/35
391,469 JP Morgan Mortgage 397,445
Trust, Series 2004-A4,
Class 2A2,
4.77%, 9/25/34
500,000 LB-UBS Commercial 487,390
Mortgage Trust, Series
2004-C2, Class A4,
4.37%, 3/1/36
106,647 Master Asset 107,016
Securitization Trust,
Series 2002-6, Class
6A1, 6.50%, 10/25/32
929,999 Master Asset 927,655
Securitization Trust,
Series 2003-12, Class
6A1, 5.00%, 12/25/33
53,284 Morgan Stanley 54,196
Mortgage Loan Trust, ----------
Series 2004-2AR, Class
1A, 5.22%, 2/25/34
TOTAL COMMERCIAL MORTGAGE BACKED 6,941,699
SECURITIES (Cost $6,781,817) ----------
SHARES OR
PRINCIPAL
AMOUNT VALUE
- ------------- ----------
CORPORATE BONDS - 41.5%
AEROSPACE & DEFENSE - 0.3%
245,000 Science Applications $ 284,393
International Corp.,
7.13%, 7/1/32
AIRLINES - 0.2%
221,780 Atlas Air, Inc., 208,594
7.20%, 1/2/19 ----------
AUTOMOTIVE - 1.3%
1,095,000 DaimlerChrysler NA 1,104,814
Holdings,
4.05%, 6/4/08
125,000 General Motors Corp., 130,486
7.13%, 7/15/13
160,000 General Motors Corp., 168,305
8.25%, 7/15/23 ----------
1,403,605
----------
BANKING & FINANCIAL SERVICES - 15.3%
500,000 AIG SunAmerica, Inc., 535,155
MTN, 5.75%, 2/16/09
200,000 American Financial 219,101
Group, 7.13%, 4/15/09
275,000 American General 288,811
Finance,
5.88%, 7/14/06
200,000 BankBoston NA, 216,470
7.38%, 9/15/06
500,000 BB&T Corp., 513,656
6.38%, 6/30/05
295,000 CIT Group, Inc., 323,521
7.38%, 4/2/07
195,000 CIT Group, Inc., 197,798
4.75%, 12/15/10
200,000 Countrywide Home 194,232
Loan, 4.00%, 3/22/11
225,000 Fannie Mae, 262,282
6.63%, 11/15/30
230,000 Ford Motor Credit Co., 237,823
5.63%, 10/1/08
610,000 Ford Motor Credit Co., 663,382
7.38%, 2/1/11
240,000 Ford Motor Credit Co., 253,749
7.00%, 10/1/13
275,000 Franklin Resources, Inc., 275,582
3.70%, 4/15/08
370,000 General Electric Capital 371,397
Corp., 4.25%, 12/1/10
500,000 General Motors 509,590
Acceptance Corp.,
8.38%, 2/22/05
284,000 General Motors 297,923
Acceptance Corp.,
6.88%, 9/15/11
43
================================================================================
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
TAMARACK QUALITY FIXED INCOME FUND (CONT.)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
- ------------- ----------
505,000 Genworth Financial, $ 505,398
Inc., 2.03%,
6/15/07, (b)
770,000 Goldman Sachs Capital 772,427
I, 6.35%, 2/15/34
250,000 Goldman Sachs Group, 286,799
Inc., 7.35%, 10/1/09
75,000 Household Finance 75,855
Corp., 4.13%, 12/15/08
165,000 Household Finance 181,864
Corp., 6.38%, 10/15/11
600,000 Household Finance 664,827
Corp., 6.38%, 11/27/12
300,000 Jefferies Group, Inc., 333,255
7.50%, 8/15/07
290,000 John Deere Capital 301,710
Corp., 5.13%, 10/19/06
500,000 KeyCorp, 529,481
6.75%, 3/15/06
200,000 KFW International 208,609
Finance, Inc.,
4.75%, 1/24/07
500,000 Merrill Lynch & Co., 545,799
6.38%, 10/15/08
160,000 National Rural Utilities 185,162
Corp., 7.25%, 3/1/12
25,000 National Rural Utilities 32,290
Corp., 8.00%, 3/1/32
1,030,000 NB Capital Trust IV, 1,186,337
8.25%, 4/15/27
310,000 North Fork Bancorp., 315,266
5.00%, 8/15/12
910,000 SLM Corp., 914,562
5.00%, 10/1/13
490,000 Southtrust Bank NA, 488,944
4.75%, 3/1/13
250,000 SunTrust Bank, Inc., 278,730
6.38%, 4/1/11
500,000 Synovus Financial Corp., 525,545
7.25%, 12/15/05
500,000 Textron Financial Corp., 496,219
2.69%, 10/3/06
1,650,000 Toyota Motor Credit 1,687,726
Corp., 4.35%, 12/15/10
160,000 Unitrin Inc., 158,859
4.88%, 11/1/10
500,000 Wachovia Corp., 518,748
7.45%, 7/15/05
200,000 Washington Mutual, 210,217
Inc., 5.63%, 1/15/07 ----------
16,765,101
----------
BUILDING & CONSTRUCTION - 1.1%
200,000 D.R. Horton, Inc., 218,500
6.88%, 5/1/13
SHARES OR
PRINCIPAL
AMOUNT VALUE
- ------------- ----------
770,000 Lennar Corp., $ 773,615
2.66%, 3/19/09, (b)
155,000 Masco Corp., 163,379
6.75%, 3/15/06 ----------
1,155,494
----------
CABLE - 1.5%
660,000 Comcast Cable 687,225
Communications, Inc.,
6.38%, 1/30/06
135,000 Comcast Cable 152,686
Communications, Inc.,
7.13%, 6/15/13
250,000 Rogers Cable, Inc., 245,000
6.25%, 6/15/13
250,000 Shaw Communications, 271,875
Inc., 7.25%, 4/6/11
250,000 Videotron Ltee, 256,250
6.88%, 1/15/14 ----------
1,613,036
----------
CHEMICAL - 0.6%
500,000 E.I. Du Pont de 549,178
Nemours & Co.,
8.25%, 9/15/06
140,000 Ecolab, Inc., 157,364
6.88%, 2/1/11 ----------
706,542
----------
COMMERCIAL SERVICES - 0.5%
200,000 Aramark Services, Inc., 205,677
8.15%, 5/1/05
225,000 Aramark Services, Inc., 243,167
7.00%, 5/1/07
130,000 PHH Corp., 148,675
7.13%, 3/1/13 ----------
597,519
----------
COMPUTER INDUSTRY - 0.5%
250,000 IBM Corp., 259,522
4.88%, 10/1/06
285,000 Interactive Corp., 311,900
7.00%, 1/15/13 ----------
571,422
----------
CONSUMER GOODS & SERVICES - 0.7%
715,000 First Brands Corp., 782,470
7.25%, 3/1/07 ----------
ELECTRIC (INTEGRATED) - 0.9%
150,000 Carolina Power & Light, 156,987
6.13%, 9/15/33
345,000 El Paso Electric Co., 387,444
9.40%, 5/1/11
450,000 Midamerican Energy 464,547
Co., 5.13%, 1/15/13 ----------
1,008,978
----------
44
================================================================================
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
TAMARACK QUALITY FIXED INCOME FUND (CONT.)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
- ------------- ----------
ENERGY - 4.9%
453,000 Anderson Exploration $ 495,899
Ltd, 6.75%, 3/15/11
295,000 Consolidated Natural 321,878
Gas, 6.25%, 11/1/11
590,000 Keyspan Gas East, 648,950
6.90%, 1/15/08
575,000 Kinder Morgan Energy 680,632
Partners LP,
7.75%, 3/15/32
250,000 NRG Energy, Inc., 267,813
8.00%, 12/15/13, (c)
100,000 OAO Gazprom, 109,670
9.13%, 4/25/07
100,000 Pemex Project Funding 111,500
Master Trust,
7.88%, 2/1/09
200,000 Piedmont Natural Gas 206,313
Co., 6.00%, 12/19/33
750,000 Praxair, Inc., 820,940
6.50%, 3/1/08
815,000 Sempra Energy, 814,385
2.21%, 5/21/08, (b)
800,000 Tosco Corp., 867,494
7.25%, 1/1/07 ----------
5,345,474
----------
ENTERTAINMENT - 1.6%
250,000 Boyd Gaming Corp., 268,125
7.75%, 12/15/12
210,000 Harrah's Operating Co., 209,455
Inc.,
5.38%, 12/15/13, (c)
200,000 Intrawest Corp., 207,250
7.50%, 10/15/13
535,000 Marriott International, 584,392
7.00%, 1/15/08
250,000 Park Place 278,125
Entertainment, Inc.,
7.00%, 4/15/13
250,000 Penn National Gaming, 257,500
Inc., 6.88%, 12/1/11 ----------
1,804,847
----------
FOOD & BEVERAGES - 0.3%
295,000 Supervalu, Inc., 342,835
7.50%, 5/15/12 ----------
FOREIGN AGENCIES - 1.0%
100,000 Federal Republic of 110,350
Brazil, 10.00%, 8/7/11
100,000 Federal Republic of 112,100
Brazil, 11.00%, 8/17/40
250,000 Ontario Province, 268,271
5.50%, 10/1/08
SHARES OR
PRINCIPAL
AMOUNT VALUE
- ------------- ----------
100,000 Republic of Colombia, $ 112,500
9.75%, 4/23/09
100,000 Republic of Panama, 113,250
9.38%, 7/23/12
100,000 Republic of Peru, 115,000
9.88%, 2/6/15
50,000 Republic of Peru, 49,625
8.75%, 11/21/33
100,000 Republic of Philippines, 105,125
9.38%, 1/18/17
100,000 United Mexican States, 123,300
9.88%, 2/1/10 ----------
1,109,521
----------
HEALTH CARE - 0.6%
155,000 Eli Lilly & Co., 162,061
5.50%, 7/15/06
425,000 Humana, Inc., 453,695
7.25%, 8/1/06 ----------
615,756
----------
MACHINERY & EQUIPMENT - 0.4%
50,000 Crane Co., 51,602
5.50%, 9/15/13
345,000 Hutchison Whampoa 354,034
International, Ltd., ----------
6.25%, 1/24/14, (c)
405,636
----------
MEDIA - 1.2%
565,000 News America Holdings, 660,230
Inc., 7.70%, 10/30/25
400,000 Time Warner Co., Inc., 435,202
8.11%, 8/15/06
180,000 Time Warner 215,277
Entertainment, ----------
8.38%, 3/15/23
1,310,709
----------
PAPER & RELATED PRODUCTS - 1.4%
600,000 Avery Dennison Corp., 613,422
6.76%, 4/15/05
250,000 Georgia Pacific Corp., 294,375
9.38%, 2/1/13
550,000 Weyerhaeuser Co., 600,179
6.95%, 10/1/27 ----------
1,507,976
----------
REITS - 1.2%
650,000 Kimco Realty Corp., 738,516
7.86%, 11/1/07
334,000 Shurgard Storage 342,832
Centers, Inc.,
5.88%, 3/15/13
245,000 Simon Property Group 259,775
LP, 6.88%, 11/15/06 ----------
1,341,123
----------
45
================================================================================
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
TAMARACK QUALITY FIXED INCOME FUND (CONT.)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
- ------------- -----------
RESTAURANTS - 0.5%
500,000 Darden Restaurants, $ 523,605
Inc., 8.38%, 9/15/05 -----------
RETAIL - 0.7%
600,000 Kroger Co., 670,155
7.45%, 3/1/08
40,000 Kroger Co., 44,733
6.75%, 4/15/12 -----------
714,888
-----------
TELECOMMUNICATIONS - 2.4%
550,000 Deutsche Telekom 659,224
International Finance,
8.50%, 6/15/10
250,000 Nextel Communications, 268,750
Inc., 7.38%, 8/1/15
250,000 Rogers Wireless, Inc., 230,000
6.38%, 3/1/14, (c)
85,000 SBC Communications, 88,184
Inc., 7.00%, 8/15/05
250,000 SBC Communications, 266,901
Inc., 5.88%, 2/1/12
70,000 Sprint Capital Corp., 73,812
7.13%, 1/30/06
670,000 Sprint Capital Corp., 702,759
6.88%, 11/15/28
150,000 Verizon New England, 165,471
Inc., 6.50%, 9/15/11
200,000 Verizon Virginia, Inc., 195,296
4.63%, 3/15/13 -----------
2,650,397
-----------
TEXTILES - 0.7%
210,000 Mohawk Industries, 224,457
Inc., 6.50%, 4/15/07
500,000 VF Corp., 525,568
8.10%, 10/1/05 -----------
750,025
-----------
TRANSPORTATION & SHIPPING - 1.2%
500,000 Burlington Northern 551,066
Santa Fe Corp.,
9.25%, 10/1/06
200,000 CHC Helicopter Corp., 208,500
7.38%, 5/1/14
453,418 Federal Express Corp., 532,489
7.50%, 1/15/18 -----------
1,292,055
-----------
UTILITIES - 0.5%
500,000 Niagra Mohawk Power 536,546
Co., 7.75%, 5/15/06 -----------
TOTAL CORPORATE BONDS 45,348,547
(Cost $43,763,334) -----------
SHARES OR
PRINCIPAL
AMOUNT VALUE
- ------------- -----------
U.S. GOVERNMENT AGENCY OBLIGATIONS - 31.4%
FANNIE MAE - 10.9%
36,050 7.00%, 12/1/07 $ 37,120
278,780 6.42%, 11/1/08 302,671
17,774 8.25%, 1/1/09 18,465
12,285 8.00%, 2/1/09 12,941
6,199 8.50%, 7/1/13 6,219
53,622 5.50%, 3/1/17 55,541
5,063 5.50%, 3/1/17 5,244
81,418 5.50%, 5/1/17 84,331
306,436 5.00%, 8/1/17 312,196
539,905 5.50%, 8/1/17 559,225
377,330 5.50%, 11/1/17 390,448
3,042,212 4.50%, 12/1/17 3,043,678
21,208 9.50%, 6/25/18 23,204
609,176 4.50%, 9/1/18 608,830
13,248 9.25%, 10/1/20 14,839
123,137 6.50%, 5/1/29 129,471
251,341 7.50%, 9/1/29 269,466
36,525 7.00%, 10/1/29 38,792
43,117 7.00%, 12/1/29 45,793
645 7.00%, 1/1/30 684
726 7.00%, 2/1/30 770
103,670 7.00%, 2/1/30 110,029
12,205 7.00%, 2/1/30 12,954
861 7.00%, 2/1/30 914
40,765 7.00%, 2/1/30 43,265
197,955 6.50%, 11/1/32 207,783
536,851 5.00%, 4/1/33 532,575
360,898 5.50%, 5/1/33 366,468
643,009 5.50%, 6/1/33 652,933
752,590 5.50%, 7/1/33 764,205
482,818 6.00%, 7/1/33 500,278
614,716 5.00%, 8/1/33 609,820
2,194,396 5.00%, 9/1/33 2,176,917
-----------
11,938,069
-----------
FREDDIE MAC - 5.1%
14,678 7.75%, 4/1/08 15,512
6,977 7.75%, 11/1/08 7,270
2,671 8.00%, 8/1/09 2,725
17,362 8.25%, 10/1/10 18,031
57,309 8.00%, 1/1/12 61,093
29,965 9.00%, 6/1/16 33,496
74,175 6.00%, 2/1/18 77,790
32,672 8.00%, 10/1/18 35,727
7,040 9.00%, 10/1/18 7,587
520,000 5.20%, 3/5/19 510,204
49,004 7.50%, 2/1/21 52,882
1,000,000 5.50%, 2/15/26 1,022,716
250,000 7.00%, 8/15/29 264,501
555,568 7.50%, 2/1/30 597,914
123,526 7.50%, 2/1/30 132,581
120,606 7.50%, 1/1/31 129,447
27,301 7.00%, 9/1/31 28,984
46
================================================================================
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
TAMARACK QUALITY FIXED INCOME FUND (CONT.)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
- ------------- -----------
75,712 5.50%, 11/1/31 $ 77,047
739,222 6.00%, 11/1/32 764,617
974,372 5.50%, 6/1/33 989,847
458,507 5.00%, 8/1/33 455,460
289,791 6.00%, 9/1/33 299,646
----------
5,585,077
----------
GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION - 14.2%
4,894 7.50%, 3/15/07 5,108
4,618 7.50%, 3/15/07 4,819
28,908 7.50%, 7/15/07 30,167
37,614 8.00%, 10/15/07 39,550
583,817 8.00%, 11/15/09 622,815
65,320 7.50%, 10/15/11 69,773
6,146 7.50%, 10/15/11 6,565
55,331 7.50%, 11/15/11 59,104
6,305 9.50%, 4/15/16 7,127
18,701 9.50%, 1/15/19 21,203
1,203 9.50%, 9/15/19 1,363
26,630 8.00%, 5/15/22 29,283
14,036 8.00%, 12/15/22 15,434
210,000 5.15%, 6/16/23 219,328
15,460 6.50%, 8/15/23 16,421
79,632 6.50%, 9/15/23 84,579
13,190 6.50%, 11/15/23 14,010
58,200 6.50%, 12/15/23 61,816
11,681 6.50%, 12/15/23 12,407
20,677 6.50%, 2/15/24 21,941
200,929 6.50%, 3/15/24 213,217
586,151 7.00%, 3/15/24 627,965
68,353 7.00%, 5/15/24 73,229
255,655 6.50%, 6/15/24 271,290
41,802 8.00%, 11/15/26 45,862
771,183 8.00%, 12/15/26 846,081
453,812 7.00%, 12/15/29 484,519
500,000 4.75%, 1/16/30 507,606
489,037 4.36%, 2/16/30 492,178
7,061 6.00%, 5/15/31 7,337
71,128 6.50%, 5/15/31 75,147
35,418 6.50%, 7/15/31 37,412
9,224 6.50%, 8/15/31 9,743
98,089 6.00%, 9/20/31 101,760
14,277 6.50%, 11/15/31 15,081
101,412 6.00%, 2/15/32 105,307
32,520 6.50%, 4/15/32 34,345
100,775 7.00%, 4/15/32 107,490
134,261 6.00%, 6/15/32 139,417
24,335 7.00%, 7/15/32 25,956
141,574 7.50%, 7/15/32 152,473
144,932 6.00%, 8/15/32 150,498
36,599 7.00%, 8/15/32 39,038
118,484 6.50%, 9/15/32 125,136
266,214 6.00%, 10/20/32 276,022
482,144 6.00%, 1/15/33 500,728
SHARES OR
PRINCIPAL
AMOUNT VALUE
- ------------- -----------
207,480 6.00%, 3/15/33 $ 215,428
112,948 6.00%, 4/15/33 117,275
246,843 5.00%, 8/15/33 246,231
706,387 5.00%, 8/15/33 704,638
236,459 5.00%, 8/15/33 235,873
225,724 5.00%, 8/15/33 225,165
766,443 5.00%, 8/15/33 764,545
939,331 5.00%, 8/15/33 937,005
5,053,011 5.00%, 1/15/34 5,034,879
305,000 4.93%, 11/16/44 310,532
-----------
15,599,221
-----------
NEW VALLEY GENERATION IV - 0.1%
97,478 4.69%, 1/15/22 92,762
-----------
SMALL BUSINESS ADMINISTRATION - 0.6%
17,650 9.80%, 7/1/08 18,805
2,815 10.05%, 8/1/08 3,013
9,796 10.05%, 4/1/09 10,502
600,000 4.68%, 9/10/14 600,000
-----------
632,320
-----------
TENNESSEE VALLEY AUTHORITY - 0.5%
500,000 6.25%, 12/15/17, 562,437
Series E -----------
TOTAL U.S. GOVERNMENT AGENCY 34,409,886
OBLIGATIONS -----------
(Cost $33,806,953)
U.S. TREASURY BONDS - 6.5%
405,000 8.13%, 8/15/19 554,454
2,650,000 8.13%, 5/15/21 3,670,250
400,000 6.25%, 8/15/23 467,094
610,000 5.50%, 8/15/28 655,726
500,000 5.25%, 11/15/28 520,039
170,000 6.13%, 8/15/29 198,123
1,031,000 5.38%, 2/15/31 1,104,459
-----------
TOTAL U.S. TREASURY BONDS 7,170,145
(Cost $6,679,761) -----------
U.S. TREASURY INFLATION PROTECTION
BONDS - 1.0%
1,100,000 2.00%, 7/15/14 1,129,793
TOTAL U.S. TREASURY INFLATION 1,129,793
PROTECTION BONDS
(Cost $1,101,054)
U.S. TREASURY NOTES - 1.6%
1,265,000 3.88%, 2/15/13 1,257,093
500,000 4.25%, 11/15/13 506,446
-----------
TOTAL U.S. TREASURY NOTES 1,763,539
(Cost $1,765,786) -----------
47
================================================================================
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
TAMARACK QUALITY FIXED INCOME FUND (CONT.)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
- ------------- -----------
INVESTMENT COMPANIES - 0.3%
298,214 Wells Fargo Prime $ 298,214
Investment Money Market
Fund, Investor Class
TOTAL INVESTMENT COMPANIES 298,214
(Cost $298,214) ------------
TOTAL INVESTMENTS 109,597,010
(Cost $106,503,803) (a) - 100.0% ------------
LIABILITIES IN EXCESS OF OTHER (48,554)
ASSETS - 0.0% ------------
NET ASSETS - 100.0% $109,548,456
============
(a) See notes to financial statements for tax basis unrealized appreciation
(depreciation) of securities.
(b) Variable rate security. The rate reflected in the Statement of Investments
is the rate in effect on September 30, 2004. The maturity date represents the
actual maturity date.
(c) Rule 144A, Section 4(2) or other security, which is restricted as to resale
to qualified purchasers.
(d) When-issued security.
MTN - Medium Term Note
SEE NOTES TO FINANCIAL STATEMENTS.
48
================================================================================
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
TAMARACK TAX-FREE INCOME FUND
- --------------------------------------------------------------------------------
SEPTEMBER 30, 2004
SHARES OR
PRINCIPAL
AMOUNT VALUE
- ------------- -----------
MUNICIPAL BONDS - 94.7%
ARIZONA - 2.3%
500,000 Maricopa County $ 642,278
Unified School District,
9.25%, 7/1/07
ARKANSAS - 7.4%
1,000,000 Arkansas State College 825,030
Savings, Series B,
0.00%, 6/1/10
1,200,000 Arkansas State 1,196,508
University Revenue -----------
Housing System,
4.75%, 3/1/29, (FGIC
Insured)
2,021,538
-----------
CALIFORNIA - 2.2%
500,000 Santa Rosa Waste 598,930
Water Revenue, Series -----------
B, 6.00%, 9/1/15, (FGIC
Insured) COLORADO - 5.9%
500,000 State Educational & 503,615
Cultural Facilities
Authority Revenue,
3.75%, 6/1/14, (XLCA
Insured)
1,000,000 Weld County School 1,117,530
District, -----------
5.50%, 12/1/19, (FSA
Insured)
1,621,145
-----------
CONNECTICUT - 4.3%
1,000,000 Bridgeport, Series A, 1,171,650
6.00%, 7/15/14, (FGIC -----------
Insured)
FLORIDA - 5.0%
500,000 Miami-Dade County 298,340
Special Obligation,
0.00%, 10/1/15, (MBIA
Insured)
1,000,000 State Board of 1,086,490
Education, -----------
5.00%, 6/1/19
1,384,830
-----------
ILLINOIS - 8.3%
1,000,000 Chicago, Series B, 1,107,390
5.13%, 1/1/22,
(AMBAC Insured)
SHARES OR
PRINCIPAL
AMOUNT VALUE
- ------------ ------------
1,000,000 Cook County Township $ 1,175,440
High School District, -----------
5.50%, 12/1/19
2,282,830
-----------
INDIANA - 1.0%
250,000 Kokomo Center School 281,323
Building Corp., -----------
6.75%, 7/15/07,
(AMBAC Insured)
LOUISIANA - 0.7%
195,000 St. Tammany Parish 198,900
Hospital Service District -----------
#2 (Slidell Memorial
Hospital & Medical
Center),
6.13%, 10/1/11
MASSACHUSETTS - 14.5%
1,000,000 Foxborough Stadium 1,155,480
Project, 6.00%, 6/1/14
500,000 Framingham County, 573,450
6.00%, 3/1/15
1,000,000 State Construction 1,127,800
Loan, Series E,
5.38%, 1/1/17
1,000,000 State Health & 1,140,590
Education Facilities -----------
Authority (Partners
Healthcare), Series C,
5.75%, 7/1/12
3,997,320
-----------
MICHIGAN - 13.4%
1,000,000 Hartland School District 1,157,860
Construction,
6.00%, 5/1/20, (Q-SBLF
Insured)
750,000 Howell Public Schools, 827,835
5.25%, 5/1/15, (Q-SBLF
Insured)
500,000 Jackson Public Schools, 578,930
6.00%, 5/1/13, (FGIC &
Q-SBLF Insured)
1,000,000 State Building Authority, 1,117,620
Series III, -----------
5.38%, 10/15/16
3,682,245
-----------
NEW HAMPSHIRE - 1.9%
500,000 Higher Education & 527,585
Health Facility (Franklin -----------
Pierce Law Center),
5.50%, 7/1/18
49
================================================================================
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
TAMARACK TAX-FREE INCOME FUND (CONT.)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
- ------------ -----------
NEW YORK - 3.2%
785,000 New York City $ 873,477
Transitional Finance -----------
Prerefunded Future,
Series B, 5.50%, 2/1/16
TEXAS - 16.5%
1,000,000 Frisco Independent 1,176,210
School District,
6.50%, 8/15/15,
(PSF-Gtd Insured)
1,000,000 Plano Independent 1,103,060
School District,
5.38%, 2/15/16,
(PSF-Gtd Insured)
1,000,000 San Antonio Electric & 1,142,570
Gas, 5.38%, 2/1/15
500,000 San Antonio Electric & 568,730
Gas, 5.75%, 2/1/15
500,000 University of Texas 573,730
Revenue, Series B, -----------
5.25%, 8/15/19
4,564,300
-----------
WASHINGTON - 8.1%
1,000,000 Seattle Municipal Light 1,107,370
& Power,
5.63%, 12/1/16
1,000,000 Seattle Water Systems, 1,113,310
5.75%, 7/1/23, (FGIC
Insured)
2,220,680
-----------
TOTAL MUNICIPAL BONDS 26,069,031
(Cost $24,003,498) -----------
INVESTMENT COMPANIES - 4.6%
163,336 Goldman Sachs 163,336
Financial Square
Tax-Free Institutional
Money Market Fund,
Investor Class
1,090,079 Wells Fargo National 1,090,079
Tax-Free Money Market -----------
Fund, Investor Class
TOTAL INVESTMENT COMPANIES 1,253,415
(Cost $1,253,415) -----------
TOTAL INVESTMENTS 27,322,446
(Cost $25,256,913) (a) - 99.3%
OTHER ASSETS IN EXCESS OF 178,814
LIABILITIES - 0.7% -----------
NET ASSETS - 100.0% $27,501,260
===========
(a) See notes to financial statements for unrealized appreciation (depreciation)
of securities.
AMBAC - Ambac Assurance Corporation
FGIC - Financial Guaranty Insurance
FSA - Financial Security Assurance Inc.
MBIA - MBIA Insurance Corporation
PSF-Gtd -Permanent School Fund Guaranteed
Q-SBLF - Qualified SchoolBoard Loan Fund
XLCA - XL Capital Insurance
SEE NOTES TO FINANCIAL STATEMENTS.
50
================================================================================
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
TAMARACK NORTH CAROLINA TAX-FREE BOND FUND
- --------------------------------------------------------------------------------
SEPTEMBER 30, 2004
SHARES OR
PRINCIPAL
AMOUNT VALUE
- ------------ -----------
NORTH CAROLINA MUNICIPAL OBLIGATIONS - 89.9%
500,000 Cabarrus County CP, $ 553,950
5.50%, 4/1/15, Callable
4/1/11 102
335,000 Cabarrus County GO, 361,666
5.30%, 2/1/08, Callable
2/1/07 100.5, (MBIA
Insured)
500,000 Catawba County 535,970
Memorial Hospital
Project Revenue,
4.40%, 10/1/08,
(AMBAC Insured)
300,000 Centennial Authority 315,102
Hotel Tax Revenue,
Arena Project,
4.65%, 9/1/06, (FSA
Insured)
435,000 Charlotte GO, Series A, 464,936
4.75%, 2/1/10, Callable
2/1/08 101
250,000 Charlotte Water & 267,138
Sewer System Revenue,
Series A, 4.38%, 7/1/15
500,000 Charlotte-Mecklenburg 535,120
Health Care Systems
Revenue, Series A,
4.90%, 1/15/10,
Callable 1/15/07 102
1,000,000 Cumberland County CP, 1,027,770
Series A,
6.20%, 12/1/07,
Pre-refunded 12/1/04
102, (AMBAC Insured)
500,000 Cumberland County 546,015
Hospital Facilities
Revenue,
5.25%, 10/1/10,
Callable 10/1/09 101
500,000 Duplin County, 551,659
5.00%, 9/1/10,
(AMBAC Insured)
300,000 Fayetteville Public Works 310,305
Commission Revenue,
Series A,
5.25%, 3/1/08, Callable
3/1/05 102, (AMBAC
Insured)
265,000 Gastonia GO, 270,276
3.40%, 4/1/11
250,000 High Point Water & 263,378
Sewer System GO,
4.50%, 6/1/16, Callable
6/1/12 101, (MBIA
Insured)
SHARES OR
PRINCIPAL
AMOUNT VALUE
- ------------ -----------
500,000 Iredell County Memorial $ 540,570
Hospital Revenue,
5.10%, 10/1/11,
Callable 10/1/07 101,
(AMBAC Insured)
250,000 Lincoln County GO, 265,488
4.70%, 6/1/17, Callable
6/1/12 101, (FGIC
Insured)
500,000 North Carolina 544,615
Educational Facilities
Finance Agency
Revenue, Wake Forest
University Project,
5.00%, 11/1/12,
Callable 11/1/07 102
415,000 North Carolina Housing 417,465
Finance Agency Home
Ownership Revenue,
Series A1, 4.75%,
1/1/05, AMT
235,000 North Carolina Housing 244,689
Finance Agency Home
Ownership Revenue,
Series 4A, 4.45%,
7/1/07, AMT
220,000 North Carolina Housing 231,449
Finance Agency Home
Ownership Revenue,
Series 13A, 4.95%,
7/1/14, Callable 7/1/11
100, AMT
500,000 North Carolina 549,360
Infrastructure CP,
5.00%, 2/1/11
525,000 North Carolina Medical 570,103
Care Community
Hospital Revenue,
Southeastern Regional
Medical Center Project,
5.75%, 6/1/13, Callable
6/1/09 102
500,000 North Carolina 551,090
Municipal Power
Agency #1, Catawba
Electric Revenue,
5.25%, 1/1/09, (MBIA
Insured)
250,000 North Carolina State 268,590
GO, Series A,
4.75%, 4/1/14, Callable
4/1/08 102
250,000 North Carolina State 268,608
Public School Building
GO, 4.60%, 4/1/13,
Callable 4/1/09 102
51
================================================================================
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
TAMARACK NORTH CAROLINA TAX-FREE BOND FUND (CONT.)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
- ------------ -----------
250,000 Pitt County Memorial $ 264,493
Hospital Revenue,
5.38%, 12/1/10,
Callable 12/1/05 102,
Escrowed to Maturity
625,000 Pitt County Public 674,431
Facilities CP, Series A,
5.35%, 4/1/07, (MBIA
Insured)
250,000 Union County GO 270,678
School, 4.75%, 3/1/13,
Callable 3/1/11 101
545,000 University of North 585,722
Carolina Greensboro
Revenue, Series A,
4.63%, 4/1/13, Callable
4/1/11 101, (FSA
Insured)
500,000 Wake County GO, 541,804
Series A,
4.75%, 2/1/14, Callable
2/1/11 101.5
500,000 Winston-Salem CP, 538,000
Series A, -----------
5.30%, 6/1/09, Callable
6/1/06 102
TOTAL NORTH CAROLINA MUNICIPAL 13,330,440
OBLIGATIONS (Cost $12,570,310) -----------
INVESTMENT COMPANIES - 9.0%
741,925 Goldman Sachs 741,926
Financial Square Tax
Free Money Market
Fund, Investor Class
593,540 Wells Fargo National 593,540
Tax-Free Money Market -----------
Fund, Investor Class
TOTAL INVESTMENT COMPANIES 1,335,466
(Cost $1,335,466) -----------
TOTAL INVESTMENTS 14,665,906
(Cost $13,905,776) (a) - 98.9%
OTHER ASSETS IN EXCESS OF 167,288
LIABILITIES - 1.1% -----------
NET ASSETS - 100.0% $14,833,194
===========
(a) See notes to financial statements for tax basis unrealized appreciation
(depreciation) of securities.
AMBAC - AMBAC Indemnity Corp.
AMT - Alternative Minimum Tax
CP - Certificate of Participation
FGIC - Financial Guaranty Insurance Corp.
FSA - Financial Security Assurance
GO - General Obligation
MBIA - MBIA, Inc.
SEE NOTES TO FINANCIAL STATEMENTS.
52
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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
================================================================================
- --------------------------------------------------------------------------------
To the Board of Trustees and Shareholders of Tamarack Funds Trust
We have audited the accompanying statements of assets and liabilities, including
the schedules of investments, of the portfolios of Tamarack Funds Trust, which
include Government Income Fund, Quality Fixed Income Fund, Tax-Free Income Fund
and North Carolina Tax-Free Bond Fund (collectively, the "Funds") as of
September 30, 2004. We have audited the related statements of operations,
statements of changes in net assets and the financial highlights for the period
from May 1, 2004 through September 30, 2004 and for the year ended April 30,
2004 for Government Income Fund, Quality Fixed Income Fund and North Carolina
Tax-Free Bond Fund. We have audited the related statement of operations,
statement of changes in net assets and the financial highlights for the period
from July 1, 2004 through September 30, 2004 and for the year ended June 30,
2004 for Tax-Free Income Fund. These financial statements and financial
highlights are the responsibility of the Funds' management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audits. The statements of changes in net assets and the financial
highlights of Government Income Fund, Quality Fixed Income Fund and North
Carolina Tax-Free Bond Fund for periods prior to April 30, 2004, were audited by
other auditors whose report, dated June 17, 2003, expressed an unqualified
opinion. The statement of changes in net assets and the financial highlights of
Tax-Free Income Fund for periods prior to June 30, 2004, were audited by other
auditors whose report, dated August 22, 2003, expressed an unqualified opinion.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures included confirmation of
securities owned as of September 30, 2004, by correspondence with the Funds'
custodian and brokers; where replies were not received from brokers, we
performed other auditing procedures. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of each
of the Funds as of September 30, 2004, and the results of operations, the
changes in net assets, and the financial highlights for the respective stated
periods in conformity with accounting principles generally accepted in the
United States of America.
DELOITTE & TOUCHE LLP
Chicago, Illinois
November 19, 2004
53
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MANAGEMENT
================================================================================
INDEPENDENT TRUSTEES(1)
- --------------------------------------------------------------------------------
T. GERON BELL (63)
POSITION HELD WITH FUND: Trustee; Since January, 2004
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: President of Twins Sports, Inc.
(parent company of the Minnesota Twins and Victory Sports) (2002-present);
prior thereto President of the Minnesota Twins Baseball Club Incorporated
(1987-present); Director, Great Hall Investment Funds, Inc. (1993-2004);
Trustee, J&B Funds (2003-2004); Director, Babson Funds (2003-2004).
NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN: 17
- --------------------------------------------------------------------------------
LUCY HANCOCK BODE (53)
POSITION HELD WITH FUND: Trustee; Since January, 2004
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Healthcare consultant; Director,
RBC Funds (1994-2004).
NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN: 17
- --------------------------------------------------------------------------------
LESLIE H. GARNER JR. (54)
POSITION HELD WITH FUND: Trustee; Since January, 2004
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: President, Cornell College;
Director, RBC Funds (1994-2004).
NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN: 17
- --------------------------------------------------------------------------------
RONALD JAMES (53)
POSITION HELD WITH FUND: Trustee; Since January, 2004
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: President and Chief Executive
Officer, Center for Ethical Business Cultures (2000-present); Director, Great
Hall Investment Funds, Inc. (1993-2004); Trustee, J&B Funds (2003-2004);
Director, Babson Funds (2003-2004).
NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN: 17
- --------------------------------------------------------------------------------
JOHN A. MACDONALD (55)
POSITION HELD WITH FUND: Trustee; Since January, 2004
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Chief Investment Officer, Hall
Family Foundation; Trustee, J&B Funds (2001-2004).
NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN: 17
- --------------------------------------------------------------------------------
H. DAVID RYBOLT (62)
POSITION HELD WITH FUND: Trustee; Since January, 2004
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Consultant, HDR Associates
(management consulting); Director, Babson Funds (1992-2004).
NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN: 17
- --------------------------------------------------------------------------------
(1) Unless otherwise specified, the address of each trustee/officer is 100
South Fifth Street, Suite 2300, Minneapolis, Minnesota 55402.
54
================================================================================
MANAGEMENT
================================================================================
INDEPENDENT TRUSTEES(1)
- --------------------------------------------------------------------------------
JAMES R. SEWARD (51)
POSITION HELD WITH FUND: Trustee; Since January, 2004
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Private investor (2000-present);
Trustee, J&B Funds (2001-2004); Financial Consultant, Seward & Company, LLC
(1998-2000); CFA.
NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN: 17
- --------------------------------------------------------------------------------
JAY H. WEIN (72)
POSITION HELD WITH FUND: Trustee; Since January, 2004
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Private investor (1989-present);
Director, Great Hall Investment Funds, Inc. (1993-2004); Trustee, J&B Funds
(2003-2004); Director, Babson Funds (2003-2004).
NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN: 17
- --------------------------------------------------------------------------------
Interested Trustees(1)
- --------------------------------------------------------------------------------
MICHAEL T. LEE (41)
POSITION HELD WITH FUND: Trustee; Since January, 2004
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Chief Operating Officer and Senior
Vice President, Voyageur Asset Management Inc. (2003-present); Senior Portfolio
Manager, Voyageur Asset Management Inc. (2000-present); Vice President, Senior
Research Analyst and Equity Portfolio Manager, Voyageur Asset Management Inc.
(1999-2003).
NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN: 17
- --------------------------------------------------------------------------------
Executive Officers(1)
- --------------------------------------------------------------------------------
JENNIFER D. LAMMERS (43)
POSITION HELD WITH FUND: President and Chief Executive Officer; Since January,
2004
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Managing Director, Voyageur Asset
Management (2000-present); Mutual Fund Services Director, Voyageur Asset
Management (2003-present); Chief Financial Officer, Great Hall Investment Funds,
Inc. (2001-2003); Compliance Officer, Great Hall Investment Funds, Inc.
(2000-2001); Director of Finance, Voyageur Asset Management (2000-2003); Vice
President and Manager, Financial Reporting, RBC Dain Rauscher (1998-2000);
President and Chief Executive Officer (2003-2004)(2).
CHRISTOPHER J. TOMAS (34)
POSITION HELD WITH FUND: Treasurer, Chief Financial Officer, and Principal
Accounting Officer; Since January, 2004
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Vice President and Finance Manager,
RBC Dain Rauscher (2001-present); Compliance Officer, Great Hall Investment
Funds, Inc. (2001-2003); Senior Financial Analyst, RBC Dain Rauscher
(1999-2001); Financial Analyst, RBC Dain Rauscher (1997-1999); Treasurer, Chief
Financial Officer and Principal Accounting Officer (2003-2004)(2).
- --------------------------------------------------------------------------------
(1) Unless otherwise specified, the address of each trustee/officer is 100
South Fifth Street, Suite 2300, Minneapolis, Minnesota 55402.
(2) Great Hall Investment Funds, Inc., J&B Funds, Babson Enterprise Fund, Inc.,
Babson Enterprise Fund II, Inc., Babson-Stewart Ivory International Fund,
Inc., Babson Value Fund, Inc., David L. Babson Growth Fund, Inc., D.L.
Babson Bond Trust, D.L. Babson Money Market Fund, Inc., D.L. Babson
Tax-Free Income Fund, Inc., Shadow Stock Fund, Inc., and Investors Mark
Series Fund, Inc.
55
================================================================================
MANAGEMENT
================================================================================
EXECUTIVE OFFICERS(1)
- --------------------------------------------------------------------------------
MARTIN A. CRAMER (54)
POSITION HELD WITH FUND: Vice President, Assistant Secretary, Chief Compliance
Officer, and AML Compliance Officer; Since January, 2004
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Vice President and Mutual Fund
Administration Manager, Voyageur Asset Management (2003-present); Legal and
Regulatory Affairs Vice President, Compliance Officer and Secretary, J&B (mutual
fund management and distribution company) (1993-2003); Vice President, Assistant
Secretary, Compliance Officer and AML Compliance Officer (2003-2004)(2), and
formerly, Vice President, Compliance Officer and Secretary, Buffalo Fund Complex
(1994-2003) and Secretary, Gold Bank Funds(3) (2001-2003).
- --------------------------------------------------------------------------------
LAURA M. MORET (50)
POSITION HELD WITH FUND: Secretary and Chief Legal Officer; Since January, 2004
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Vice President and Senior Associate
Counsel, RBC Dain Rauscher (2002-present); Vice President and Group Counsel,
American Express Financial Advisors (1995-2002); Secretary (2003-2004)(2).
- --------------------------------------------------------------------------------
RAYE C. KANZENBACH (55)
POSITION HELD WITH FUND: Chief Investment Officer, Fixed Income Products; Since
January, 2004
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Senior Managing Director and Chief
Investment Officer, Voyageur Asset Management; Chief Investment Officer, Great
Hall Investment Funds, Inc. (1997-2004).
- --------------------------------------------------------------------------------
(1) Unless otherwise specified, the address of each trustee/officer is 100
South Fifth Street, Suite 2300, Minneapolis, Minnesota 55402.
(2) Great Hall Investment Funds, Inc., J&B Funds, Babson Enterprise Fund, Inc.,
Babson Enterprise Fund II, Inc., Babson-Stewart Ivory International Fund,
Inc., Babson Value Fund, Inc., David L. Babson Growth Fund, Inc., D.L.
Babson Bond Trust, D.L. Babson Money Market Fund, Inc., D.L. Babson
Tax-Free Income Fund, Inc., Shadow Stock Fund, Inc., and Investors Mark
Series Fund, Inc.
(3) The Buffalo Fund Complex consists of Buffalo Balanced Fund, Inc., Buffalo
Large Cap Fund, Inc., Buffalo High Yield Fund, Inc., Buffalo Small Cap
Fund, Inc., Buffalo USA Global Fund, Inc., and the Buffalo Funds, which is
a series fund consisting of Buffalo Science & Technology Fund and Buffalo
Mid Cap Fund. Gold Bank Funds is a series fund consisting of Gold Bank
Equity and Gold Bank Money Market Fund.
56
================================================================================
SHARE CLASS INFORMATION
================================================================================
- --------------------------------------------------------------------------------
The Tamarack Fixed Income Funds offer five share classes, three of which are
currently authorized for sale to new investors. These three share classes are
the A, C and R classes.
- --------------------------------------------------------------------------------
A CLASS
A Class shares are available for purchase primarily through investment advisors,
broker- dealers, banks and other financial services intermediaries. A Class
shares of the Tamarack Fixed Income Funds are subject to a maximum up-front
sales charge of 3.75% and a 1.00% contingent deferred sales charge ("CDSC") for
redemption within 12 months of a $1 million or greater purchase. A Class shares
include a 0.25% (25 bps) annual 12b-1 service and distribution fee. (The 12b-1
Plan allows for 50 bps, but the Funds' distributor is currently voluntarily
waiving 25 bps of the fee, and will continue to do so until at least March 31,
2005.) A Class shares have a higher up front sales charge (load) than C Class
shares, but a lower annual expense ratio.
- --------------------------------------------------------------------------------
C CLASS
C Class shares are also available for purchase primarily through investment
advisors, broker-dealers, banks and other financial services intermediaries. C
Class shares redeemed within 12 months of purchase are subject to a contingent
deferred sales charge (CDSC) of 1.00%. (No CDSC will be charged on shares
acquired through reinvestment of dividends or capital gains.) C Class shares
expenses include a 1.00% (100 bps) annual 12b-1 service and distribution fee. C
Class shares have a lower up-front sales charge (load) than A Class shares, but
due to the higher service and distribution fee, have higher annual expenses than
A Class shares.
- --------------------------------------------------------------------------------
R CLASS
R Class shares are available for purchase through employer-sponsored or 401(k)
retirement plans for which omnibus or program-level accounts are held on the
books of the Funds. R Class shares have no upfront sales charge (load), but are
subject to a 0.50% (50 bps) 12b-1 service and distribution fee. R Class shares
currently have annual expenses between A Class and C Class share expenses.
- --------------------------------------------------------------------------------
S & I CLASS
S class and class I shares are currently closed to new investors. These share
classes do not have an up front sales charge (load) or a 12b-1 service and
distribution fee.
- --------------------------------------------------------------------------------
For an investor purchasing Tamarack Funds shares through a financial services
intermediary, the question as to which share class, A or C, is the best choice
is dependent on many factors, including the amount to be invested and the length
of time an investor anticipates holding the shares. An investor should consult
with his or her financial advisor about his or her personal financial situation
to determine which share class is the best choice for his or her individual
situation.
57
================================================================================
SUPPLEMENTAL INFORMATION
================================================================================
- --------------------------------------------------------------------------------
As a shareholder of the Tamarack Funds, you incur two types of costs: (1)
transaction costs, including any applicable sales charges (loads) on purchases,
and redemption fees; (2) ongoing costs, including management fees; any
applicable 12b-1 fees; and other Fund expenses. This example is intended to help
you understand your ongoing costs (in dollars) of investing in the Tamarack
Funds and to compare these costs with the ongoing costs of investing in other
mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the
period and held for the entire period from April 1, 2004 through September 30,
2004.
- --------------------------------------------------------------------------------
ACTUAL EXPENSES
The table below provides information about actual account values and actual
expenses. You may use the information below, together with the amount you
invested, to estimate the expenses that you paid over the period. Simply divide
your account value by $1,000 (for example, an $8,600 account value divided by
$1,000 = 8.6), then multiply the result by the number in the table under the
heading entitled "Expenses Paid During Period" to estimate the expenses you paid
on your account during this period. Please note that the expenses shown in the
table are meant to highlight your ongoing costs only and do not reflect any
transactional costs, such as sales charges (loads), redemption fees, or exchange
fees. If these transactional costs were included, your costs would have been
higher.
BEGINNING ENDING EXPENSE PAID EXPENSE RATIO
ACCOUNT VALUE ACCOUNT VALUE DURING PERIOD* DURING PERIOD
4/1/04 9/30/04 4/1/04 - 9/30/04 4/1/04 - 9/30/04 (D)
--------------- --------------- ------------------ ---------------------
Government
Income Fund Class A $ 1,000.00 $ 993.60 $ 5.53 1.11%
Class I 1,000.00 994.80 4.29 0.86%
Class C (a) 1,000.00 990.00 9.25 1.86%
Class R (a) 1,000.00 993.20 6.78 1.36%
Class S (b) 1,000.00 993.80 4.29 0.86%
Quality Fixed
Income Fund Class A 1,000.00 1,004.20 4.86 0.97%
Class I 1,000.00 1,005.50 3.66 0.73%
Class C (a) 1,000.00 1,000.50 8.60 1.72%
Class R (a) 1,000.00 1,002.90 6.01 1.20%
Class S (b) 1,000.00 1,005.50 3.61 0.72%
Tax-Free
Income Fund Class A (c) 1,000.00 1,002.60 6.16 1.23%
Class C (c) 1,000.00 999.00 9.95 1.99%
Class R (c) 1,000.00 1,001.40 7.51 1.50%
Class S 1,000.00 1,003.80 4.96 0.99%
North Carolina
Tax-Free
Bond Fund Class A 1,000.00 1,002.70 5.66 1.13%
Class I 1,000.00 1,004.00 4.36 0.87%
(a) The inception date for Class C and Class R shares of the Fund is April 19,
2004. All performance shown for each such class of shares prior to its
inception date is based on the performance of the Class A Shares of the
Fund, adjusted to reflect the fees and expenses of Class C and Class R
shares, as applicable (and where applicable, the maximum sales charges of
the Class C shares).
(b) The inception date for Class S of the Fund is April 19, 2004. All
performance shown for each such class of shares prior to its inception date
is based on the performance of the Class I Shares of the Fund, adjusted to
reflect the fees and expenses of Class I.
(c) The inception date for Class A, Class C and Class R shares of the Fund is
April 19, 2004. All performance shown for each such class of shares prior
to its inception date is based on the performance of the Class S Shares of
the Fund, adjusted to reflect the fees and expenses of Class A, Class C and
Class R shares, as applicable (and where applicable, the maximum sales
charges of the Class A and Class C shares).
(d) Annualized.
58
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SUPPLEMENTAL INFORMATION
================================================================================
- --------------------------------------------------------------------------------
HYPOTHETICAL EXAMPLE
FOR COMPARISON PURPOSES
The table below provides information about hypothetical account values and
hypothetical expenses based on each Tamarack Funds' actual expense ratio and an
assumed rate of return of 5% per year before expenses, which is not the Fund's
actual return. The hypothetical account values and expenses may not be used to
estimate the actual ending account balance or expenses you paid for the period.
You may use this information to compare this 5% hypothetical example with the 5%
hypothetical examples that appear in the shareholder reports of other mutual
funds. Please note that the expenses shown in the table are meant to highlight
your ongoing costs only and do not reflect any transactional costs, such as
sales charges (loads), redemption fees, or exchange fees. Therefore, the table
is useful in comparing ongoing costs only, and will not help you determine the
relative total costs of owning different funds. In addition, if these
transactional costs were included, your costs would have been higher.
BEGINNING ENDING EXPENSE PAID EXPENSE RATIO
ACCOUNT VALUE ACCOUNT VALUE DURING PERIOD* DURING PERIOD
4/1/04 9/30/04 4/1/04 - 9/30/04 4/1/04 - 9/30/04 (D)
--------------- --------------- ------------------ ---------------------
Government
Income Fund Class A $ 1,000.00 $1,019.45 $ 5.60 1.11%
Class I 1,000.00 1,020.70 4.34 0.86%
Class C (a) 1,000.00 1,015.70 9.37 1.86%
Class R (a) 1,000.00 1,018.20 6.86 1.36%
Class S (b) 1,000.00 1,020.70 4.34 0.86%
Quality Fixed
Income Fund Class A 1,000.00 1,020.15 4.90 0.97%
Class I 1,000.00 1,021.35 3.69 0.73%
Class C (a) 1,000.00 1,016.40 8.67 1.72%
Class R (a) 1,000.00 1,019.00 6.06 1.20%
Class S (b) 1,000.00 1,021.40 3.64 0.72%
Tax-Free
Income Fund Class A (c) 1,000.00 1,018.85 6.21 1.23%
Class C (c) 1,000.00 1,015.05 10.02 1.99%
Class R (c) 1,000.00 1,017.50 7.57 1.50%
Class S 1,000.00 1,020.05 5.00 0.99%
North Carolina
Tax-Free
Bond Fund Class A 1,000.00 1,019.35 5.70 1.13%
Class I 1,000.00 1,020.65 4.39 0.87%
(a) The inception date for Class C and Class R shares of the Fund is April 19,
2004. All performance shown for each such class of shares prior to its
inception date is based on the performance of the Class A Shares of the
Fund, adjusted to reflect the fees and expenses of Class C and Class R
shares, as applicable (and where applicable, the maximum sales charges of
the Class C shares).
(b) The inception date for Class S of the Fund is April 19, 2004. All
performance shown for each such class of shares prior to its inception date
is based on the performance of the Class I Shares of the Fund, adjusted to
reflect the fees and expenses of Class I.
(c) The inception date for Class A, Class C and Class R shares of the Fund is
April 19, 2004. All performance shown for each such class of shares prior
to its inception date is based on the performance of the Class S Shares of
the Fund, adjusted to reflect the fees and expenses of Class A, Class C and
Class R shares, as applicable (and where applicable, the maximum sales
charges of the Class A and Class C shares).
(d) Annualized.
* Expenses are equal to the average account value times the Fund's annualized
expense ratio multiplied by the number of days in the six month period
ending September 30, 2004 divided by the number of days in the twelve month
period ending September 30, 2004.
59
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THIS PAGE INTENTIONALLY LEFT BLANK
- --------------------------------------------------------------------------------
60
[PHOTO]
Tamarack Funds PRSRT STD
P.O. Box 219757 U.S. POSTAGE
Kansas City, MO 64121-9757 PAID
PERMIT NO. 2891
KANSAS CITY MO.
800-422-2766
www.tamarackfunds.com
TF AR 9/04 TAMARACK DISTRIBUTORS INC.
532144 (9/04)
ITEM 2. CODE OF ETHICS.
Disclose whether, as of the end of the period covered by the report, the
registrant has adopted a code of ethics that applies to the registrant's
principal executive officer, principal financial officer, principal
accounting officer or controller, or persons performing similar functions,
regardless of whether these individuals are employed by the registrant or a
third party. If the registrant has not adopted such a code of ethics,
explain why it has not done so. THE REGISTRANT HAS ADOPTED A CODE OF ETHICS
THAT APPLIES TO THE REGISTRANT'S PRINCIPAL EXECUTIVE OFFICER, PRINCIPAL
FINANCIAL OFFICER, PRINCIPAL ACCOUNTING OFFICER OR CONTROLLER, OR PERSONS
PERFORMING SIMILAR FUNCTIONS. THIS CODE OF ETHICS IS INCLUDED AS EXHIBIT
11(a)(1).
The registrant must briefly describe the nature of any amendment, during
the period covered by the report, to a provision of its code of ethics that
applies to the registrant's principal executive officer, principal
financial officer, principal accounting officer or controller, or persons
performing similar functions, regardless of whether these individuals are
employed by the registrant or a third party, and that relates to any
element of the code of ethics definition enumerated in paragraph (b) of
this Item. The registrant must file a copy of any such amendment as an
exhibit pursuant to Item 11(a)(1), unless the registrant has elected to
satisfy paragraph (f) of this Item by posting its code of ethics on its
website pursuant to paragraph (f)(2) of this Item, or by undertaking to
provide its code of ethics to any person without charge, upon request,
pursuant to paragraph (f)(3) of this Item.
If the registrant has, during the period covered by the report, granted a
waiver, including an implicit waiver, from a provision of the code of
ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer or controller, or
persons performing similar functions, regardless of whether these
individuals are employed by the registrant or a third party, that relates
to one or more items set forth in paragraph (b) of this Item, the
registrant must briefly describe the nature of the waiver, the name of the
person to whom the waiver was granted, and the date of the waiver.
DURING THE PERIOD COVERED BY THE REPORT, WITH RESPECT TO THE REGISTRANT'S
CODE OF ETHICS THAT APPLIES TO ITS PRINCIPAL EXECUTIVE OFFICER, PRINCIPAL
FINANCIAL OFFICER, PRINCIPAL ACCOUNTING OFFICER OR CONTROLLER, OR PERSONS
PERFORMING SIMILAR FUNCTIONS; THERE HAVE BEEN NO AMENDMENTS TO, NOR ANY
WAIVERS GRANTED FROM, A PROVISION THAT RELATES TO ANY ELEMENT OF THE CODE
OF ETHICS DEFINITION ENUMERATED IN PARAGRAPH (b) OF THIS ITEM 2.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a) (1) Disclose that the registrant's board of directors has determined
that the registrant either:
(i) Has at least one audit committee financial expert serving on
its audit committee; or
(ii) Does not have an audit committee financial expert serving on
its audit committee.
(2) If the registrant provides the disclosure required by paragraph
(a)(1)(i) of this Item, it must disclose the name of the audit
committee financial expert and whether that person is "independent."
In order to be considered "independent" for purposes of this Item, a
member of an audit committee may not, other than in his or her
capacity as a member of the audit committee, the board of directors,
or any other board committee:
(i) Accept directly or indirectly any consulting, advisory, or
other compensatory fee from the issuer; or
(ii) Be an "interested person" of the investment company as
defined in Section 2(a)(19) of the Act (15 U.S.C. 80a-
2(a)(19)).
(3) If the registrant provides the disclosure required by paragraph
(a)(1)(ii) of this Item, it must explain why it does not have an audit
committee financial expert.
3(a)(1) THE REGISTRANT'S BOARD OF DIRECTORS HAS DETERMINED THAT THE REGISTRANT
HAS AT LEAST ONE AUDIT COMMITTEE FINANCIAL EXPERT SERVING ON ITS AUDIT
COMMITTEE.
3(a)(2) THE AUDIT COMMITTEE FINANCIAL EXPERT IS JAY H. WEIN, WHO IS
"INDEPENDENT" FOR PURPOSES OF THIS ITEM 3 OF FORM N-CSR.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Disclose, under the caption Audit Fees, the aggregate fees billed for
each of the last two fiscal years for professional services rendered by the
principal accountant for the audit of the registrant's annual financial
statements or services that are normally provided by the accountant in
connection with statutory and regulatory filings or engagements for those fiscal
years.
2003 $100,000
2004 $513,300
(b) Disclose, under the caption Audit-Related Fees, the aggregate fees
billed in each of the last two fiscal years for assurance and related services
by the principal accountant that are reasonably related to the performance of
the audit of the registrant's financial statements and are not reported under
paragraph (a) of this Item. Registrants shall describe the nature of the
services comprising the fees disclosed under this category.
2003 $3,254
2004 $46,000
Amount requiring approval of the registrant's audit committee is $0 and $0,
respectively.
(c) Disclose, under the caption Tax Fees, the aggregate fees billed in each
of the last two fiscal years for professional services rendered by the principal
accountant for tax compliance, tax advice, and tax planning. Registrants shall
describe the nature of the services comprising the fees disclosed under this
category.
2003 $0
2004 $81,175
Fees for both years relate to the review of the registrant's tax returns. Amount
requiring approval of the registrant's audit committee is $0 and $0,
respectively.
(d) Disclose, under the caption All Other Fees, the aggregate fees billed
in each of the last two fiscal years for products and services provided by the
principal accountant, other than the services reported in paragraphs (a) through
(c) of this Item. Registrants shall describe the nature of the services
comprising the fees disclosed under this category.
2002 $0
2003 $0
Amount requiring approval of the registrant's audit committee is $0 and $0,
respectively.
(e) (1) Disclose the audit committee's pre-approval policies and procedures
described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
The Audit Committee ("Committee") shall review and approve in advance
any proposal (except as set forth in (1) through (3) below) that the
Funds employ their auditor to render "permissible non-audit services"
to the Funds. (A "permissible non-audit service" is defined as a
non-audit service that is not prohibited by Rule 2-01(c)(4) of
Regulation S-X or other applicable law or regulation.) The Committee
shall also review and approve in advance any proposal (except as set
forth in (1) through (3) below) that the Adviser, and any entity
controlling, controlled by, or under common control with the Adviser
that provides ongoing services to the Funds (an "Adviser-affiliated
service provider"), employ the Funds' auditor to render non-audit
services, if such engagement would relate directly to the operations
and financial reporting of the Funds. As a part of its review, the
Committee shall consider whether the provision of such services is
consistent with the auditor's independence. (See also "Delegation"
below.)
Pre-approval by the Committee of non-audit services is not required so
long as:
(1) (A) with respect to the Funds, the aggregate amount of all
such permissible non-audit services provided to the Funds
constitutes no more than 5% of the total amount of revenues
paid to the auditor by the Funds during the fiscal year in
which the services are provided;
(B) with respect to the Adviser and any Adviser-affiliated
service provider, the aggregate amount of all such non-audit
services provided constitutes no more than 5% of the total
amount of revenues (of the type that would have to be
pre-approved by the Committee) paid to the auditor by the
Funds, the Adviser and any Adviser-affiliated service
provider during the fiscal year in which the services are
provided;
(2) such services were not recognized by the Funds at the time
of the engagement to be non-audit services; and
(3) such services are promptly brought to the attention of the
Committee and approved prior to the completion of the audit
by the Committee or its Delegate(s) (as defined below).
(c) Delegation
The Committee may delegate to one or more of its members
("Delegates") authority to pre-approve the auditor's provision of
audit services or permissible non-audit services to the Funds, or
the provision of non-audit services to the Adviser or any
Adviser-affiliated service provider. Any pre-approval
determination made by a Delegate shall be presented to the full
Committee at its next meeting. The Committee shall communicate
any pre-approval made by it or a Delegate to the
Sub-Administrator, who will ensure that the appropriate
disclosure is made in the Funds' periodic reports and other
documents as required under the federal securities laws.
(2) Disclose the percentage of services described in each of paragraphs
(b) through (d) of this Item that were approved by the audit committee pursuant
to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
4 (b)
2003 100%
2004 100%
Amount requiring approval of the registrant's audit committee is 100% and
100%, respectively.
4 (c)
2003 100%
2004 100%
Amount requiring approval of the registrant's audit committee is 100% and
100%, respectively.
4 (d)
2003 100%
2004 100%
Amount requiring approval of the registrant's audit committee is 100% and
100%, respectively.
(f) If greater than 50 percent, disclose the percentage of hours expended
on the principal accountant's engagement to audit the registrant's financial
statements for the most recent fiscal year that were attributed to work
performed by persons other than the principal accountant's full-time, permanent
employees. Not Applicable.
(g) Disclose the aggregate non-audit fees billed by the registrant's
accountant for services rendered to the registrant, and rendered to the
registrant's investment adviser (not including any sub-adviser whose role is
primarily portfolio management and is subcontracted with or overseen by another
investment adviser), and any entity controlling, controlled by, or under common
control with the adviser that provides ongoing services to the registrant for
each of the last two fiscal years of the registrant.
2003 $0
2004 $0
(h) Disclose whether the registrant's audit committee of the board of
directors has considered whether the provision of nonaudit services that were
rendered to the registrant's investment adviser (not including any subadviser
whose role is primarily portfolio management and is subcontracted with or
overseen by another investment adviser), and any entity controlling, controlled
by, or under common control with the investment adviser that provides ongoing
services to the registrant that were not pre-approved pursuant to paragraph
(c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the
principal accountant's independence. Not Applicable
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
(a) If the registrant is a listed issuer as defined in Rule 10A-3
under the Exchange Act (17CFR 240.10A-3), state whether or not
the registrant has a separately-designated standing audit
committee established in accordance with Section 3(a)(58)(A) of
the Exchange Act (15 U.S.C. 78c(a)(58)(A)). If the registrant has
such a committee, however designated, identify each committee
member. If the entire board of directors is acting as the
registrant's audit committee as specified in Section 3(a)(58)(B)
of the Exchange Act (15 U.S.C. 78c(a)(58)(B)), so state.
(b) If applicable, provide the disclosure required by Rule 10A-3(d)
under the Exchange Act (17CFR 240.10A-3(d)) regarding an
exemption from the listing standards for all audit committees.
THE REGISTRANT HAS A SEPARATELY DESIGNATED STANDING AUDIT COMMITTEE IN
ACCORDANCE WITH SECTION 3(a)(58)(A) OF THE EXCHANGE ACT (15 U.S.C.
78C(a)(58)(A)). AUDIT COMMITTEE MEMBERS ARE LESLIE H. GARNER, H. DAVID RYBOLT
AND JAY H. WEIN.
ITEM 6. SCHEDULE OF INVESTMENTS.
File Schedule I - Investments in securities of unaffiliated issuers as of the
close of the reporting period as set forth in ss. 210.12-12 of Regulation S-X,
unless the schedule is included as part of the report to shareholders filed
under Item 1 of this Form.
NOT APPLICABLE.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
A closed-end management investment company that is filing an annual report
on this Form N-CSR must, unless it invests exclusively in non-voting securities,
describe the policies and procedures that it uses to determine how to vote
proxies relating to portfolio securities, including the procedures that the
company uses when a vote presents a conflict between the interests of its
shareholders, on the one hand, and those of the company's investment adviser;
principal underwriter; or any affiliated person (as defined in Section 2(a)(3)
of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules
thereunder) of the company, its investment adviser, or its principal
underwriter, on the other. Include any policies and procedures of the company's
investment adviser, or any other third party, that the company uses, or that are
used on the company's behalf, to determine how to vote proxies relating to
portfolio securities.
NOT APPLICABLE.
ITEM 8. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS. If the registrant is a closed-end management
investment company, provide the information specified in paragraph (b) of this
Item with respect to any purchase made by or on behalf of the registrant or any
"affiliated purchaser," as defined in Rule 10b-18(a)(3) under the Exchange Act
(17 CFR 240.10b-18(a)(3)), of shares or other units of any class of the
registrant's equity securities that is registered by the registrant pursuant to
Section 12 of the Exchange Act (15 U.S.C. 781).
NOT APPLICABLE.
ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
Describe any material changes to the procedures by which shareholders may
recommend nominees to the registrant's board of directors, where those changes
were implemented after the registrant last provided disclosure in response to
the requirements of Item 7(d)(2)(ii)(G) of Schedule 14A (17 CFR 240.14a-101), or
this Item.
NOT APPLICABLE.
ITEM 10. CONTROLS AND PROCEDURES.
(a) Disclose the conclusions of the registrant's principal executive and
principal financial officers, or persons performing similar functions, regarding
the effectiveness of the registrant's disclosure controls and procedures (as
defined in Rule 30a-3(c) under the Act (17 CFR 270.30a-3(c))) as of a date
within 90 days of the filing date of the report that includes the disclosure
required by this paragraph, based on the evaluation of these controls and
procedures required by Rule 30a-3(b) under the Act (17 CFR 270.30a-3(b)) and
Rules 13a-15(b) or 15d-15(b) under the Exchange Act (17 CFR 240.13a-15(b) or
240.15d-15(b)).
THE REGISTRANT'S PRINCIPAL EXECUTIVE OFFICER AND PRINCIPAL FINANCIAL OFFICER
HAVE CONCLUDED, BASED ON THEIR EVALUATION OF THE REGISTRANT'S DISCLOSURE
CONTROLS AND PROCEDURES AS CONDUCTED WITHIN 90 DAYS OF THE FILING DATE OF THIS
REPORT, THAT THESE DISCLOSURE CONTROLS AND PROCEDURES ARE ADEQUATELY DESIGNED
AND ARE OPERATING EFFECTIVELY TO ENSURE THAT INFORMATION REQUIRED TO BE
DISCLOSED BY THE REGISTRANT ON FORM N-CSR IS (i) ACCUMULATED AND COMMUNICATED TO
THE INVESTMENT COMPANY'S MANAGEMENT, INCLUDING ITS CERTIFYING OFFICERS, TO ALLOW
TIMELY DECISIONS REGARDING REQUIRED DISCLOSURE; AND (ii) RECORDED, PROCESSED,
SUMMARIZED AND REPORTED WITHIN THE TIME PERIODS SPECIFIED IN THE SECURITIES AND
EXCHANGE COMMISSION'S RULES AND FORMS.
(b) Disclose any change in the registrant's internal control over financial
reporting (as defined in Rule 30a-3(d) under the Act (17 CFR 270.30a-3(d)) that
occurred during the registrant's last fiscal half-year (the registrant's second
fiscal half-year in the case of an annual report) that has materially affected,
or is reasonably likely to materially affect, the registrant's internal control
over financial reporting.
THERE WERE NO CHANGES IN THE REGISTRANT'S INTERNAL CONTROL OVER FINANCIAL
REPORTING THAT OCCURRED DURING THE REGISTRANT'S MOST RECENT FISCAL HALF-YEAR
(THE REGISTRANT'S SECOND FISCAL HALF-YEAR IN THE CASE OF AN ANNUAL REPORT) THAT
HAVE MATERIALLY AFFECTED OR ARE REASONABLY LIKELY TO MATERIALLY AFFECT, THE
REGISTRANT'S INTERNAL CONTROL OVER FINANCIAL REPORTING.
ITEM 11. EXHIBITS.
(a) File the exhibits listed below as part of this Form. Letter or number
the exhibits in the sequence indicated.
(a)(1) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit.
THE CODE OF ETHICS THAT IS THE SUBJECT OF THE DISCLOSURE REQUIRED BY ITEM 2 IS
ATTACHED HERETO.
(a)(2) A separate certification for each principal executive officer and
principal financial officer of the registrant as required by Rule 30a-2(a) under
the Act (17 CFR 270.30a-2).
CERTIFICATIONS PURSUANT TO RULE 30a-2(a) ARE ATTACHED HERETO.
(a)(3) Any written solicitation to purchase securities under Rule 23c-1
under the Act (17 CFR 270.23c-1) sent or given during the period covered by the
report by or on behalf of the registrant to 10 or more persons.
NOT APPLICABLE.
(b) If the report is filed under Section 13(a) or 15(d) of the Exchange
Act, provide the certifications required by rule 30a-2(b) under the Act as an
exhibit. A certification furnished pursuant to this paragraph will not be deemed
"filed" for purposes of Section 18 of the Exchange Act, or otherwise subject to
the liability of that section. Such certification will not be deemed to be
incorporated by reference into any filing under the Securities Act of 1933 or
the Exchange Act, except to the extent that the registrant incorporates it by
reference.
CERTIFICATIONS PURSUANT TO RULE 30a-2(b) ARE FURNISHED HEREWITH.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Tamarack Funds Trust
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By (Signature and Title)* /s/ Jennifer Lammers
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Jennifer Lammers, President and
Chief Financial Officer
Date 12/2/04
---------------------------
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following person on behalf of the registrant and in the capacities and on the
date indicated.
By (Signature and Title)* /s/ Jennifer Lammers
------------------------------------------------------
Jennifer Lammers, President and
Chief Financial Officer
Date 12/2/04
---------------------------
* Print the name and title of each signing officer under his or her signature.